Stock Swings to Rise on Fiscal Cliff, Pimco’s Kashkari Says
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Stock-market volatility will increase by the end of the year as Congress delays reaching a resolution on extending spending and tax cuts until 2013, according to Pacific Investment Management Co.’s Neel Kashkari.
“There have been little signs of Republicans and Democrats really coming together to solve the fiscal cliff in a bipartisan matter,” Kashkari, 39, who heads global equities at Newport Beach, California-based Pimco, said at the Bloomberg Portfolio Manager conference in New York. His firm manages about $8 billion in stocks and $1.92 trillion in total assets. “More likely, we’re going to see brinkmanship like we saw with the debt ceiling a year ago.”