Last word from the Congressional "Supercommittee" was that the august body of 12 members of Congress had failed to reach an agreement on their required task: finding a way to reduce the Federal budget deficit by at least $1.2 trillion. Let's look at that number in digits rather than words:
$1,200,000,000,000 That works out to the combined median income for about 24 million US households - nothing to sneeze at. But in the Supercommitte, sneeze they did, failing to reach consensus. Maybe politics is more important to them than staying within our means financially. But investors make decisions every day. There is never a failure to decide in the financial markets. Today's collective decision - a 300 point selloff as I write this - reflects a decided lack of investor confidence in Congress.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).