The Week Ahead: On the Cusp of More Dysfunction
After a super strong January, the essentially sideways move in the Dow Jones Industrial Average has continued, even though both the S&P 500 and the Nasdaq Composite have inched higher for February thus far. The continued climb last week saw the Nasdaq and the S&P 500 put in fresh five-year highs, thus fueling the debate between the market bulls and bears. Bears are looking for a pullback, while the bulls see further upside as the global economy continues to recover.
Furthering the debate over the market direction, and reminding us that the specter of uncertainty is poised to return, last week President Obama urged Congress to pass a new package of spending cuts and tax increases ahead of the looming sequestration date of March 1. This Tuesday is the president's State of the Union address, and the expectation is that he will further detail the types of spending cuts and tax adjustments he is targeting. This, in turn, will likely reignite the political debate over what should or should not be done -- as well as remind investors about the political gridlock and dysfunction in Washington that has held the domestic economy in check over the last few quarters....583 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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