Super Committee and Europe drive the Markets!!
Last week brought much of the same news volatility we have been facing for several quarters. Europe continues to dominate the headlines and will certainly be at the forefront for several weeks and months to come. We are seeing some progress with new leadership and the ability to work out the euro nation’s debt issues.
Our Super Committee seems to be a failure, although it was highly anticipated, it shows the lack of leadership and willing to compromise from Washington DC. This is not an immediate issue with a guarantee of 1.2 trillion in cuts to start in 2013, it is a major disappointment. Congress has some time to try and find the middle with more cuts and elections looming.
On the brighter side of things, we are seeing a general improvement in our economic data and fears of a double dip are dissipating into slow moderate growth. The GDP numbers have been gradually getting better with 1st quarter at.4%, 2nd quarter showing 1.3%, 3rd quarter 2.5%, and an estimate of 4th quarter GDP at 3%. I do not think this escalation of growth will continue into 2012, but it will stay positive.
This year will be easy to move on from, so take some time this holiday to be thankful for your blessings and recognize that we are on a path of progress rather and decent. The headline news will continue to jolt the market positively and negatively, but look for a softer landing and brighter days ahead.