Salient to Investors:

Jane Coffey at Royal London Asset Mgmt said we are not yet over fiscal cliff problems, but expects equities to produce good returns in 2013 and valuations aren’t stretched.

Moody’s said the budget agreement won’t reduce the deficit enough to avoid a US downgrade, and the ratio of government debt to GDP will probably peak around 80 percent in 2014 and stay there for the rest of the decade.

The Stoxx 600 is at 11.9 times estimated earnings versus the average P/E over the last 5 years of 11.5.

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