We are working on our quarterly market review and outlook which should be sent out early next week. The big story this week is obviously the Government shutdown. Republicans are hard pressed to find any way to force changes to ObamaCare so they have to use the debt ceiling to try to force negotiations. They are proposing delaying the individual mandate for one year (which President Obama has done by executive order for businesses and the Unions), eliminating the exception for Congress preventing them from having to use the same system and eliminating the medical device tax. I do think many Democrats would agree with some of these but they are resisting this because they do not want the debt ceiling to be “held ransom” to the Obama Care debate.
The real issue is that Washington is the biggest detriment to our economic recovery at this time. Our two political parties have not negotiated on anything all year and the reports are saying they literally do not talk to each other. That is simply embarrassing! This is the same political “show” they have put on several times and investors seem to be handling the uncertainty very well thus far. The actual date where the Government shutdown would cause some serious problems with our debt payments is October 17th. We anticipate that they may take this to the last minute again which could produce some volatility in the markets.
The article below discusses this and the fact that setting the Political Dysfunction aside, the economic and corporate earnings data continues to improve and any pullback will be an opportunity to continue to buy excellent companies at good prices. We will be looking at this as an opportunity if it does happen and will be in communication on this as things develop.