The stock market posted its biggest loss this year on news that Federal Reserve officials suggested the central bank scale back its effort to keep borrowing costs low.
Long-term interest rates will creep higher as the economy gradually gains strength. The wild card is Washington, where talks are under way to avert tax increases and government spending cuts scheduled to start in January.
The money manager's job is supposed to be straightforward: Take people's cash and put it to work. The more money that comes in, the bigger the manager's paycheck.
If Washington allows tax cuts to expire at the end of the year, taxes on dividends will nearly triple for the highest-paid Americans, leading to a possible collapse of the products.
Stocks rose broadly Tuesday after fears that the U.S. would slip into a recession pounded the market over the last four weeks. Indexes briefly slipped from their highest levels of the day after an earthquake was felt throughout the Northeast.
Scrambling to protect themselves against a U.S. default, investors are buying gold and foreign currencies, using derivatives to bet on a stock market collapse and taking out complicated insurance policies.