Speaker John Boehner began speaking at 11:30 EST this morning and had little good news with regard to ongoing discussions with the White House and Democratic leaders. After spiking up early in the day, the market fell off sharply with the Speaker's words. It seems that whenever politicians hold a press conference, the market hinges on perceived progress or roadblocks to a deal. The day is not over but what looked like another good rally today has turned decidedly more guarded with the news conference. We'll see if we get a Democratic response before market close that could change market sentiment. It is a dangerous market but one that has some positive underpinnings. If a deal is struck we could see a strong end of the year rally. However, if a stalemate continues the market will continue to bounce around based upon the news of the day. As we approach the end of the year without a deal, we could see significant selling as traders unwind trades amidst the uncertainty. Time will tell but making investment decisions based upon political posturing and rhetoric is a dangerous game. We will continue to maintain our somewhat conservative posturing until more clarity develops.
No comments:
Post a Comment