The 'fiscal cliff' may be a bigger threat than you think, according to BofA Merrill Lynch. The...

|By:, SA News Editor

The 'fiscal cliff' may be a bigger threat than you think, according to BofA Merrill Lynch. The looming tax increases and spending cuts could lop off as much as 1% from growth next year, and may send the economy into a deeper recession than many have predicted. Meanwhile, investors appear to remain oblivious. In a recent survey of fund managers, BofA found the market bias is for the "risk-on" trade — with the market rising higher — in spite of the political dangers looming.