Sunday, October 20, 2013

Ready to Rock n' Roll

The way I see the US economic situation after the government shutdown and possible national debt default, we came out excellently. Sure, abt $24B was lost to the economy and some short-term problems do linger, but, politically it does look like the main obstructionists have been defeated and likely some meaningful compromises can be made to avert the future possible shutdown and debt default early next year. So, likely the US economic situation will be improved by long-term debt reduction and better confidence in our economy, hence most spending held back by consumers and businesses, will now move forward. And, actually the shutdown did help some things from an economic standpoint - less of a budget deficit. So, some short-term pain, but we come away stronger. Plus, 10-year Treasury rates have come down from abt 3% to abt 2.6%, and with Janet Yellin nominated to head the Fed, the Fed likely will stay favorable, which is good for RE, stocks, bonds, etc.

As for stocks, anything can happen, but with good fundamental things in the economy, even if we have a major correction, it is overdue and likely just be a good time to pick up bargains.