Now that the election is over all attention is on Washington. The President is trying to take firm positions on what he is looking for from Congress in a “patch work” bill to stave off the fiscal cliff. However, with all the drama surrounding the scandal with General Petraeus and the questions surrounding the 9/11 Benghazi Embassy attack, the President may be losing some leverage in the process of trying to ask for too much.
With the market sell off since the Presidential election, investors are getting nervous that Washington will create another crisis in these negotiations causing a major market correction. Continue reading
The elections are finally over after many months of the most expensive, partisan political campaigning in history. After spending over $5 Billion we are right back to where we were the day before the election with President Obama, Democratic controlled Senate and Republican controlled House of Representatives. The market sell off the day after the election was likely due to the fact that Washington gridlock did not get any fundamental change from the elections. However, it is our opinion that things may actually improve now that the President has his “legacy” at stake which will be determined by two things; Obamacare and the economic recovery.
The other big change in the political process is that the impending fiscal cliff is indeed too big of a problem not to get a bipartisan bill passed to address the impending $600 billion impact on the U.S. economy at a time where the recovery is fragile. Continue reading
President Obama and Governor Mitt Romney have three more days to get their message out to voters as Election Day nears. According to the polls, this election is too close to predict. However, a few politicians from both parties are actually predicting that the polls are misleading and they are predicting a landslide, suggesting the polling data may actually be skewed. We will have to wait until next week to find out the real results. One thing that is certain is that voters seem very engaged in the election and it will be interesting to see how it all turns out. We will communicate our overall strategy for our client portfolios once we have more clarity on the real election results. Continue reading