We got a deal on the debt ceiling so the world is not over yet.
One encouraging sign is that both sides weren’t happy, which means the public usually benefits.
It is troubling that various agencies within the government indicate that such things as Social Security and Medicare will run out of money by the end of this decade and that’s just naming two.
Hard work lies ahead to decide how we will trim spending and raise more money.
This would require fiscal discipline, which no one in DC will even talk about.
It is always easy to cut something that impacts others, but a much harder sell for items that hurt back home.
It is only at times of near disaster that this type of logic sells.
It does not fit a system that is supported by lobbyists and politicians on both sides with their hands out.
That is not to say that there isn’t a great cause under every rock because they all are great
causes, but you only have so much money. The individual states work under a budget system where you pay for what you ask for.
There is no borrowing at the state level for the future.
I understand the tremendous benefits of leverage and what it can do to stimulate the economy, but you have to pay the piper.
It will come this time louder than ever.
The markets were almost ambivalent about the negotiations in DC.
It made a great news story, but investors assumed that the deal would get done and were looking past to the Fed meeting in June and the next possible rate increase.
It was interesting watching the speculation about the level of the next increase if any move up and down with each passing day.
The unemployment data came in stronger than expected and the rate held below 4%.
It seems really hard to predict a recession when so many jobs go without being filled.
It is not like there are lines waiting to be employed.
Inflation is real, but we seem to have adjusted.
Energy prices have helped as I bought diesel this weekend for my truck at $2.99.
The vaunted egg price surge has abated.
If you looked at the indexes and averages on Friday, you might think we were in the best of times.
I will say though that there is much to consider.
Investors have the option to take their savings for the first time and put it into interest-bearing instruments that pay over 5%.
There is trouble all around the world.
We are entering the next election cycle, which will point out all the problems we should address.
There is not a day that goes by on CNBC that someone comes on and predicts that within the next 3 to 6 months there will be a significant move down in the equities markets.
The Wall of Worry is not going to go away.
At least we have the hope or hype of Artificial Intelligence to distract from all the speculation of trouble.
I am heartened there is so much concern.
The trouble usually comes when everyone is far too optimistic.
That is not to say that many tech stocks have moved to significantly high multiples.
This is a hard time for value investors.
It is at these times that you rely on patience and diligence for your investing policy.