The second is the reduction in chatter about potential deflation and a double-dip recession.

FORBES: Bullish Sentiment Soars

On the other hand, a drastic, immediate deficit reduction could stymie short-term economic growth and lead to a double-dip recession.

FORBES: Austerity And Bankruptcy Not The Only Fiscal Cliff Endgames

In that case, the double dip fear could continue hanging over the market, preventing the reduction in risk premium assumed in our non-recession scenario.

FORBES: Odds Favor High-Yield Bonds