May 22, 2023
Good morning,
With about a week to go to the debt-ceiling deadline, negotiations in D.C. are sucking up all the market’s attention this week. No one knows the path of this process, but most believe it will end with a can-kicked-down-the-road. The only question is whether there is real default risk and volatility before that ending.
Last week, the market seemed to lean toward less volatility between now and the end of the debt-ceiling workout – the S&P 500 lndex was up +1.69% and is once again pushing up against the top of its 9-month range at 4,200 on the Index.
Recession, rate hikes, inflation – it’s all on a back burner for now while the debt ceiling shenanigans play out. And we get to grin and bear it.
See you Wednesday.
Be well,
Mike