16 Oct Floating Cautiously
It looks like investors are breathing a sigh of relief, based on the rumors that a deal has been reached to avert the debt ceiling crisis. The Dow is up 200 points as politicians have apparently saved us again from a financial catastrophic ordeal. The deal has yet to be announced, but markets are confident that it will happen based on stocks move higher and bonds stabilizing. Ironically, this drama may have helped interest rates for the foreseeable future. The inability of Washington D.C. to clarify anything financial or business related, keeps the pressure on the Fed to continue QE indefinitely. We will suggest locking short term transactions due to the volatile nature that an announcement could bring.