Well, here we are waiting for some resolution to the debt ceiling negotiations between Congress and the Administration.
It would seem much to do about nothing.
It would be nice to see both sides of the aisle actually negotiate for the benefit of the country as a whole instead of protecting the special interests backstopped by lobbying.
Such is not the case. Oh, for the days of Sam Rayburn and the actual practice of service above self.
That boat has actually sailed and it is not coming back.
We find ourselves almost stuck at the dock until this issue is resolved.
It would seem the limit will go up and nothing else will get done in DC until after the 2024 elections.
There is such an equal split among the parties that little seems left for compromise. One could argue that inaction the best for the economy.
We still have the impact of the higher interest rates and stricter financial policies to navigate.
It goes without saying that a recession is a real possibility.
You take that with the enormous debt load that this country will have to shoulder.
It seems inevitable that taxes will have to go up.
Not the kind of environment you would select for robust economic growth.
Without economic growth, there will be little hope for accelerated earnings.
You can talk all you want about price earnings ratios, but that means nothing if revenues and earnings are not growing.
It is not enough to grow but they have to exceed expectations.
You take all of that and then put most of the leadership in the hands of five or six stocks and it would seem worry is not to be ignored.
Talk has turned to the new savior being Artificial Intelligence.
I do believe that AI is the next big technological leap that will in fact change how things are done.
It will impact employment, especially in the least-skilled sectors.
Minimum wage will not save those without specific skills.
I am not sure it will even save those with trade skills.
You only have to look how robotics have taken on processes for automakers.
This leaves us with the age-old question of what to do next.
I recently have purchased three-month and six-month Treasuries.
With a default that won’t prove very wise.
The S&P 500 stock-index still holds above 4200 and those FANG stocks have yet to back off.
I suppose the greatest hope is that wall of worry which is pretty significant right now.
I could drone on listing the multitude of issues that could and are problems.
