S&P 500 Falls a 5th Day Amid Threat of Budget Impasse – Bloomberg 09-25-13

Salient to Investors:

Don Hodges at Hodges Funds said the noise is disruptive to people doing anything with great confidence, and any market this strong over the last few weeks is capable of a pullback that shakes people a little.

A Bloomberg poll counted 44% expecting the economy to remain the same over the next year, and 28% see it weakening.

Boris Rjavinski at UBS said their divergence will cause significant outflows from US equities into Treasuries.

The S&P 500 has risen 1.9% in 2013 when adjusted for price swings, the top advance among 24 of the largest developed nations and exceeding Japan, where prices have surged almost twice as much this year, as a measure of US volatility reached a 6-year low.

Joseph Tanious at JP Morgan Asset Mgmt said the US continues to be the most resilient economy and its markets have reflected that with the least amount of volatility, and there is less skepticism about the long-term potential in US markets.

Read the full article at  http://www.bloomberg.com/news/2013-09-25/u-s-stock-index-futures-little-changed-on-budget-concern.html

Click here to receive free and immediate email alerts of the latest forecasts.