February 28, 2013
Now that we have the Italian election panic out of the way, all the chatter has turned to “sequestration.” The meat-cleaver budget cuts will happen unless Congress and the President can agree to another course by 11:59 tomorrow night. Of course, right on cue, Congressional representatives and the President will meet tomorrow to point fingers at each other, and perhaps – just perhaps do their jobs.
So, if you’ve been yelling at your kids because they don’t do their homework until just before it’s due, relax. They probably have a future in Washington.
Meantime, the Dow Jones Industrials should open within about 85 points of an all-time high. Why? Well, sequestration could lead to a loss of jobs, which could slow the economy, which would keep the Federal Reserve interest rate policy ridiculously low for a long time to come. Recall investing rule number 1 - Don’t fight the Fed.