Converging run-up to the election

The market continues to hem and haw leading up to the election. Following that the sequestration decision has enormous implications for next directions in the US mkt. There’s a 1.5T potential swing based on who wins and how sequestration pans out.

In the worst case (in my view) Romney wins, and tries to spend an addition 1T on defense over the next 10 years, AND sequestration is lifted preventing an additional 500B from being auto-cut from defense.  That would be 1.5 large down the drain, and would perpetuate the aggressive overseas interventionist policies of the last decade. Meanwhile we cant get funding for high school sports teams and free community college and skills training

 

 

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