At this time it appears fairly certain the debt ceiling issue will be resolved, at least in the short-term. It has been very interesting to see the amount of time our political representatives have had both in front of the camera, and behind closed doors to hammer out an agreement.
As we mentioned in our last post, it now appears that the possible debt ceiling stalemate/discussion has led to a cautious tone in our economy.
Earlier in the year possible economic growth headwinds included the terrible Japan disaster and higher gasoline prices. These items are not in the way this time, leaving the initial negative economic news (Durable Goods, GDP, ISM Manufacturing, Personal Income/Spending) most likely a result of the debt ceiling debate.
In closing, recall we are still in the middle innings of the normal summer doldrums, and trudging through the 90 day treadmill otherwise known as quarterly earnings (update soon, but so far looking pretty good.) Or said another way “When the cat is away the mice will play“, and there are many cat’s away on summer vacations!
Have a Great Day!