Call me crazy, but I continue to work from the perspective that the market's have typically performed the calculus on something as protracted as the political wrangling around the Fiscal Cliff - before we actually get there. It's just that the equity markets are typically the last to know. Financial journalism of course will be reactionary and paint the market's as such.
Below is a chart of the silver:gold ratio up to yesterday's close. As we have noted over the past two weeks, it had been rolling over - before its large swoon this week.
So goes the silver:gold ratio - so goes the equity markets.