Should shareholders be worried about the US fiscal cliff?

We do not expect the result of the US elections to have a lasting impact on the stock market. Neither the tax hikes on investment income proposed by President Obama nor the tax cuts proposed by his defeated Republican challenger are likely to see the light of day, as Congress remains split. But a compromise between the Democrats and Republicans to avert next year’s fiscal "cliff" may not be reached until the eleventh hour, which could affect sentiment in the meantime.