Mr. Dickson thinks Wall Street may be overly pessimistic. D.A. Davidson has its roots in the Pacific Northwest, including many clients in Montana. Sen. Max Baucus (D) of Montana is the ranking member of the Senate Budget Committee.
“The word we are getting is that they are working beyond overtime for an acceptable compromise with a few high profile pieces that have to be hammered out,” says Dickson. “The stumbling blocks are diminishing.”
Friday afternoon, Mr. Obama said he would not accept any deal that did not increase the tax burden on those making more than $250,000 a year.
That could be a deal killer for the Republicans.
“I would like to believe they will compromise, but the cynic in me says Congress will allow us to fall off the cliff and allow the Bush tax cuts to expire so no one can be accused of raising taxes,” says Sam Stovall, chief investment strategist at S&P Capital IQ in New York.