MADISON (WKOW)-- The looming "Fiscal Cliff" has been a major topic over the past few weeks with discussions intensifying over the past few days.
As President Barack Obama and the rest of Washington hammer out a deal for the pending fiscal cliff, business owners and experts are anxious for a decision.
"It's so uncertain. We don't know what the policy makers are going to do, what influence they're going to have. How do you act, how do you do anything?" says Madison financial advisor Mike Dubis.
Dubis, who has advised clients in Southern Wisconsin for over 10 years, says the uncertainty has lead to panic with several investors. However, he argues that when you look long and hard at the situation, things aren't as bad as they seem. The real issues are further in our nation's future.
"The way I look at this cliff is a big overreaction. There are bigger issues we have to deal with. Long term we have to deal with a major deficit issue. We have to deal with a major spending issue," Dubis says.
It's an issue that could affect many people, raising taxes and slowing down private spending. However, the notion that the country is going to immediately fall into financial disaster come January 1st, Dubis says that's just not the case. Any change bad or good would slowly go into effect.
"Taxes technically go up it doesn't mean the president and Congress can't retroactively change it.," Dubis says. "In fact they have a whole year to do it if they want."
As for his clients, Dubis is advising them to diversify their money, spreading it out into multiple assets and most importantly don't panic or make rash decisions.
"Friday the market was down 1% and people went haywire because they said the fiscal cliff is coming. That's regular, it happens all the time in the stock market," Dubis says. "Treasury bonds are still yielding 1.7%. This is clearly not a country on the verge of collapse.
All content © Copyright 2000 - 2014 WorldNow and WKOW. All Rights Reserved.
Persons with disabilities who need assistance with issues relating to the content of this station's public inspection file should contact Anna Engelhart at 608-661-2767. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, at 888-835-5322 (TTY) or at email@example.com.