RE:RE:The US Budget Deal - Some ThoughtsAdded to that a significant swing towards T bills as default risk is now removed
from them and investors of every stripe load up. The net effect from this swing in
sentiment is liquidity is pulled out of the stock market and directed to Treasuries and
and the bond market. In time the equity markets will catch up but initially you might be disappointed in the lacklustre reaction.
Those thoughts are from some of the top analysts out of the US. They are saying
caution on the equity side. Things are never as straightforward as investors would
like. The one caveat however, is oil. It has been discounted the most over default
concerns so should rally.
One thing that is still up in the air is selling the deal to the extremists on both sides
of the aisle. That is still to be accomplished which hopefully will get done over the
next 72 hrs. I am sure the arm twisting will get fierce as each day brings the country
closer to the point from which there is no return.