Going into the end of the year, there's a debt deal in the works, no tapering in sight, and a slew of other economic indicators are turning positive. Will the economy skyrocket?
Let me set the scene for you:
* There is a Debt Deal in the works that removes the ceiling and related draconian cuts from the discussion til at least February. Out of sight, out of mind.
* There is no election this fall.
* There is no war with Syria and high level talks are happening with Iran for the first time in decades.
* The incoming Fed Chairperson is the most dovish in the institution's 100 year history. There will be no taper talk whatsoever so long as employment data remains muted. At least not this quarter and probably not until the spring barring a huge tsunami of good economic data.
* Stock markets around the world are selling at fair to absurdly cheap valuations.
* The banks are as highly capitalized as they have ever been.