Investors had pretty much concluded that a taper would begin this month so the news on Wednesday that it would not came as a little bit of a shock. The stock market took off that afternoon rising about 140 points; a celebration. However, by Friday, the market had another concern to deal with. It seems as though Congress is on a collision path with our Federal Administration over the debt ceiling and the Affordable Care Act, ObamaCare.
This collision could result in a government shutdown. There have been over 20 shutdowns in the past, so this is nothing new, but it can still be harmful. The 2011 confrontation over the debt ceiling measurably hurt the economy and set our recovery back. It is too early to see how this one will play out, but at the very least it introduces another unknown at a time when the economy needs a steady and consistent hand. Look for a rocky period, but fundamentals still look strong so that should help over time.