October Market Update
Bringing you our October Market Update.
Congratulations to our representatives in D.C. You’ve created yet another self-inflicted fiasco on a fragile recovery with your only solution the umpteenth iteration of kick-the-can, so we can go through all this again after the holiday shopping season. The media’s mind-boggling distribution of misinformation combined with the hyperbolic handwringing from both sides of the isle created an embarrassing spectacle that has increased the reasons businesses in America continue to be wary. The stock market however, in its increasingly short-term myopia was off and running again on the news that we would have a few months of respite before this particularly pleasurable pastime of political pandemonium, pandering and petulance proceeds anew. The markets are so apathetic concerning DC risk that the S&P500 was all of 2.3% below its all-time high in the 24 hours prior to the Treasury officially running out of money.
Bottom Line: The political climate is likely to remain polarized and petulant, making DC an ongoing headwind to any recovery. The markets continue to treat poor or lackluster economic news as good news in that it makes continued Fed support more likely. Clearly a positive response to negative stimuli cannot go on indefinitely, but the markets can and often do remain irrational for much longer than anyone would think possible.
