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US economy: Staring at the cliff

The US's economy is faring better than its politics

By Charles Dumas   November 2012

The economy will dominate the problems that confront the winner of the 6th November election, but this is an election worth winning. Either President Barack Obama or Mitt Romney will benefit from the way that the US economy has adjusted in the wake of the 2008 financial crisis—better than anywhere else.

For investors this means that, after some turbulence this winter, the US stock market could yield solid returns, with better growth than Europe or Japan, and probably outperforming all but a few emerging markets as well.

As soon as the…

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