Monday, October 7, 2013

Stock Market: Government Shutdown - Ignore The Scarecrows

(Drivebycuriosity) - This morning I have read a lot of scary headlines. The website Business Insiders warns about "The Horrific Stock Market Crash We Could Witness If The US Government Misses An Interest Payment" (businessinsider) and Bloomberg writes "A U.S. Default Seen as Catastrophe Dwarfing Lehman's Fall" (finance). Last week the leader of the Western World skirled that "Wall Street should be worried" (cnbc).

I believe that the president is a bad investment adviser and investors should ignore all those scarecrows. The ado about government shutdown and the public debt ceiling reminds me of the fiscal cliff drivel from 2011. Since then the S&P 500, a gauge for the U.S. stock market, gained more than 40% and the global economy continued its uprise. Today U.S. and world economy are much robuster. China & Europe are gathering speed again and will support the already solid U.S. economy.

We are now witnessing the typical chicken game (who will retreat first?) between infantile politicians who have to impress their clientele. Therefore Washington D.C. is producing much noise and smoke again. The U.S. economy will weather the ridiculous squabble as it did the frequent former noisy quarrels.  Soon the skirmish in Washington D.C. will be forgotten and the stock market will reach new highs.

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