The Republicans caved in on a no win scenario they were
pushing and the markets breathed a sigh of relief. The story here is how the
bond markets showed little fear despite everything going to the last minute. It
is somewhat depressing that our politicians shut the Government down and took
us to the brink of a potentially disastrous scenario - one that we have never
been on.
Still, my focus is the markets and I am surprised that the
bond markets showed no fear at all. After the decision to kick the bucket a few
months out, there was a strong move upwards. I was in Germany
Here is a chart on SPY showing the strong up move. Same with
IYR. Even TLT the long term Treasury bond fund has perked up. Time to stay
long.
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