Here’s something that most people did not expect to see. With only days until the Fiscal Cliff is reached, defense stocks (measured by the ITA ETF) are at some of the highest points they have been all year.
This is shocking, seeing as how everyone and their mother expected that with no Fiscal Cliff deal, the stocks would plummet.
Maybe the market is still expected that a deal will be reached in the near future.
Then again, maybe the theory of plummeting defense stocks without a deal was simply wrong to begin with.
Paul Hudson | Elite.