Wednesday, October 2, 2013

Gov. Shutdown - Cutler Investment Group's thoughts

We were asked by Reuters our opinion on the government shutdown, specifically how long it might last. While predicting the levers of Congress is difficult, one thing is for certain- a compromise will be reached at some point. Specifically, we responded to Reuters with the quote below. You can find the whole article at this link.

"The House of Representatives and the President have each staked out intractable positions, and at this point we don’t have clarity on a possible resolution. The stock market is the barometer of the economic damage from the shutdown, and the immediate reaction of stocks being positive has not provided an impetus for any of the political actors to change course. The shutdown will continue to drag on GDP, an effect that ultimately will hurt stock prices. We believe that this will be a catalyst for compromise, and we anticipate stocks will begin to reflect this economic drag within the next week."

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