State of Affairs – Our Perspective
Most likely you are asking the same question we are. What is going on in Washington? And how and when does it end? We clearly have an acrimonious situation in Congress that has caused a government shutdown. Coupled with the looming debt ceiling deadline of October 17th, this state of affairs is creating mounting uncertainty and great angst for investors. It must be remembered this is a political problem and most likely not an economic problem. Most economists forecast a shutdown that gets resolved within 30 days will impact 4th quarter GDP by just 0.1-0.2% and have no ongoing negative impact. In fact, our best guess is that GDP growth over the next two years will be relatively steady around the 2% level. This is certainly not robust growth but better than most developed economies.READ MORE