Economists are warning that the US will plunge into a recession again if Congress doesn't reach a deal to avoid massive tax hikes and spending cuts — the so-called "fiscal cliff."
But Bill Stromberg, director of global equity and global equity research at Baltimore's T. Rowe Price Group Inc., tells USA Today that investors shouldn't worry too much about this affecting their portfolio in the long run. They should build a diversified portfolio and worry instead about the artificially low interest rates that will go up at some point.
"I personally don't think average investors should be structuring their portfolio around the idea of a short-term deadline in the market," Stromberg tells USA Today. "Their long-term asset allocation and choice of investments should be based on much longer-term horizons."
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