The markets didn't move much. But trouble may be brewing as the U.S. inches closer to its debt ceiling.
First the scoreboard:
And now the top stories:
- This is the second trading session where stocks basically went nowhere. But it's not bad considering the fact that stocks currently sit near their five-year high. However, Vitaliy Katsenelson of Contrarian Edge, notes that stocks are flat since 2000. And he recently gave a big presentation arguing that stocks could go sideways for another decade.
- Meanwhile, Washington continues to wrestle over a deal that would address the debt ceiling. "If Congressional Republicans refuse to pay America’s bills on time, Social Security checks, veterans benefits will be delayed," Obama said. Check out this painting that describes what would happen if the U.S. defaults on its debt.
- So, what's with the complacency in the markets? "A key investment lesson of the last five years is that politicians eventually reach a compromise although markets may suffer in the interim," wrote Goldman Sachs' David Kostin in a note to clients this week. "Investors have become accustomed to midnight negotiations in order to avoid one dire fate after another. Accordingly, downside may be limited this time."
- Don't Miss: The True Story Of The Time JP Morgan Saved America From Default By Using An Obscure Coin Loophole >
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