The beginning of summer with the holiday-shortened trading week.
It would appear that some sort of deal was reached between the Administration and the Speaker of the House.
Now will come the real hard work of getting the House and Senate to pass the debt ceiling bill.
I understand the positions of both sides.
We are dealing with spending that was approved in the past with a different Congressional plurality.
I just wish those in charge actually understood how important it is that the dollar is the reserve currency around the world.
China would love to change that sooner than later.
I am also aware that we built up a formidable amount of debt that will have to be paid off.
It will require higher taxes and spending cuts. No politician I know runs on that platform.
So much for Modern Monetary Theory of printing money with no worries.
We will have to wait this week to see what, in fact, will happen.
I does disturb the markets when elected officials on either side use this as a forum to push an agenda that really has nothing to do with the matter at hand.
Grandstanding is such foolery.
This with a market that is being supported almost totally by the hope of the future with artificial intelligence.
Hopefully, you bought Nvidia at the end of last year.
You would have more than doubled your money in less than six months.
This is why you see the NASDAQ outperforming the Dow and the S&P 500 stock-index.
Tech firms are driving the train right now. It is where all the promise of significant growth is located.
We are almost assuming that little or nothing else will exist in the economy.
It is easier to sell what one can imagine rather than what is reality.
Never forget how far and fast Bitcoin ran up on much the same scenario.
I would say though that we have an economy that is particularly resilient with all that is happening.
You have the war in Ukraine, trouble in the Middle East, the debt ceiling, higher interest rates and an upcoming election.
In truth, the wall of worry is rather significant.
I have to mention whether the Federal Reserve is through raising interest rates.
For all the predictions of the devastation that these higher rates will bring, it isn’t and may not happen.
I would say that the economy is cooling down, but far from heading in reverse.
It wouldn’t take much to push it off the rails, but so far we keep moving.
The long hot days of summer are coming and it will not be lazy hazy days for long naps.
This time, you will have to keep both hands on the wheel at 2 and 10 or you might not make it.
