When the Going Gets Tough…The Tough Get Disciplined
October 17, 2013 is the day that the U.S. Treasury has indicated it will exhaust its ability to work around the debt ceiling limit of $16.7 trillion (which was reached some months earlier). Today (October 16) the U.S. stock market is in rally mode on hopes of a political compromise. Interest rates (for example the U.S. 10-year treasury note at yield of about 2.7%) also indicate the markets expect this to be settled. The internet is alive with speculation that any settlement will extend the debt ceiling through next January or February, while Washington negotiates over the budget. So the budget and debt issue is not going away. We can expect periodic bouts of market volatility as this plays out over time. Such an environment is one where an investor needs the discipline of their plan as per a written investment policy statement (see our post on this political stalemate and investment discipline dated October 7, 2013).
October 16, 2013
Authored by: T. Taylor Payne, CPA/PFS, CFP®
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