I have been willfully ignorant of whatever is going on in
Washington. When I do hear snippets here and there on Bloomberg I want to do
this:
If I listen at this point it will only be a detriment to
prudent wealth management:
- T = 0: Self-inflicted issue (e.g. the debt ceiling) that could have a “catastrophic” impact on the markets and the economy starts being chatted about in investment circles
- T = 1: Self-inflicted issue begins to pick up steam as a “legitimate” threat; markets largely ignore
- T = 2: Politicians dig in and hope for a comprise is lost; markets pick up volatility
- T = 3: Now the only thing that will save us is a last minute deal; market moves down a few percent, not enough for me to put cash to work and buy (annoying), but also not triggering any sell signals for existing holdings
- T = 4: At the last minute whichever party is losing the popularity poll caves; market back to where it was before
- T = 5: Self-congratulating politicians save the world from a problem they created; everyone vomits
- T = 6: For real? Those insufferable mutants only kicked the can down the road, again not solving their own problem
- T = 7: Wait until we get to do this same charade all over again
I am fairly sure the above blueprint can be written in
stone. Thus, if you care to tune out
Washington like I do then take a nap for a month and that’s where we will be.
Note: The Debt Ceiling talks of August 2011 coincided with a
near collapse in Europe, thus the almost 20% decline in the markets doesn’t
count.
The views and opinions expressed herein are those of the
author(s) noted and may or may not represent the views of Capital Analysts,
Inc. or Lincoln Investment. The material presented is provided for
informational purposes only. Nothing contained herein should be construed as a
recommendation to buy or sell any securities. As with all investments, past
performance is no guarantee of future results. No person or system can predict
the market. All investments are subject to risk, including the risk of
principal loss.
