BarroMetrics Views: Washington Post Mortem
My Dad used to say: “don’t threaten punishment unless you are prepared to carry it out”.
I was wrong about what the Republicans would do when push came to shove: the final settlement gave them little in exchange for ending the crisis. True the can was kicked down the road. But the Democrats have learned that all they need do is stand firm and they will get what they want.
In the meantime, the US stock market ‘learned’ that it can buy on any dip thus reinforcing the belief that the FED will keep the stock market afloat no matter what. It’s unlikely now we’ll see a taper before 2014.
So, does that mean we now can buy US stocks and stock indices’ futures with impunity?
I’ll be examining this in the coming week.