Headlines and conversations have been monopolized with talk about the government shut-down and the US debt crisis. Political gridlock has generated volatility and uncertainty in the US markets which has even begun to effect global markets. In light of the current political and economic status, we have decided to reduce our exposure to the markets, lock in gains of certain investments, and increase our cash position.
The US is dangerously close to defaulting on its debt which is responsible for creating recent volatility, making it our main focus. The government shut-down tends to have less of an impact on the markets but contributes to the bigger economic picture. Jack Lew, the United States Secretary of the Treasury, has deemed October 17th to be the official debt ceiling dead line at which we, The United States, figuratively runs out of money. Political posturing and an unlikely compromise between the two parties have created a fear among investors. History indicates that an argumentative unwillingness to agree on a solution leads to a long negotiation process in which the final agreement tends to be made in the 11th hour. It is our belief that we will see resolve before the US defaults on their debt. However, sticky situations like this tend to make markets potentially unstable, so we have decided to reduce your exposure, capture gains, and search for another entry point.
Find out what's happening in Novatowith free, real-time updates from Patch.
If you have any questions, please feel free to contact me.
Scott Stanley
