Congress’ inability to reach a compromise to end the government shutdown and raise the debt ceiling is negatively affecting consumer confidence; consumer confidence has dropped at the quickest rate since 2008.
At this point, this mess in congress can not be ignored. As a result I have gotten even more defensive. I have been raising cash levels systematically over the last couple weeks.
Consumer Confidence Survey
Historically, the market bottoms in October and then rallies strongly into year-end. I will take my cue from the market’s reaction to events as they unfold.