Heard on the Street

Investors Ignore Cliff Hedge

Dec. 3, 2012 1:54 p.m. ET

It's curious that so many investors think the chances of the economy going over the fiscal cliff are so low. It's even stranger that they don't seem to be doing anything to protect themselves in case they are wrong.

The condensed version of the fiscal-cliff story getting told on Wall Street goes something like this: It's clear that if Washington doesn't act to head off the automatic tax increases and spending cuts on tap for next...

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