Brief Hiatus This Week While Much is Brewing
Meditations on Money Management is taking a brief break this week for a big family event. There are plenty of stories brewing that will command attention. I am particularly interested in the negotiations now underway between the Justice Department and SAC Capital and the potential settlement between government regulators and JP Morgan concerning its mortgage business.
As Congress stumbles toward the fiscal cliff and the debt limit, I think I have a clearer understanding of the Fed’s decision not to begin the process of tapering its purchases of long-term debt. I have no idea whether Congress will cobble together a continuing resolution or lift the deb ceiling. Common sense says they should come to an agreement on both issues. However, common sense is a rare commodity in Washington these days.
For money managers, correctly predicting the future earnings of companies or handicapping the next move by the Fed are difficult endeavors. Forecasting the outcome of a political circus is an order of magnitude more difficult.