The inability to arrive at a deal on the debt ceiling is a super concern for investors. As the week proceeds and the negotiations continue, the volatility index will rise too. This will prompt investors to sell. This could occur even as corporations may demonstrate that they are back into profitability without the measures of cutting costs and laying off workers. Ordinarily the latter would cause a rise in the indexes.
The disappointment and potential misery extends around the globe. Certain Tea Party Congressional people are playing a major juvenile game. They are holding not just the US economy but the world economy in jeopardy. We are watching people overwhelmed and giddy with their finger on incredible power, literally drunk with power. Nero is back.
Reuters: Stocks stymied without a U.S. debt deal
(So far)...39 companies in the benchmark S&P 500 index .SPX have posted results, with 74 percent reporting earnings that topped Wall Street estimates.
Major financial companies due to report include Goldman Sachs, Morgan Stanley, Bank of America Corp and American Express. Also on the calendar are earnings news from technology companies Apple Inc, Microsoft Corp and Intel Corp.
But the longer the debt ceiling question continues without a conclusion, the bigger the risk for further declines in stocks and for volatility to spike.
No comments:
Post a Comment