The market’s pattern year to date in 2012 resembles the market’s action in 2011. A number of the issues impacting the market this year are similar to those that impacted the markets in 2011. Last year investors had to digest the impact of the debt ceiling debate in Washington and S&P placing the government’s debt on negative watch (and subsequently issuing a one notch downgrade), weather related issues influenced commodity markets with flooding in a number of countries around the globe, including in the Midwest of the U.S. and wildfire and droughts impacted the southwestern and southeastern parts of the U.S. These events are again top of mind for investors this year.
|From The Blog of HORAN Capital Advisors|
The policy issue at the forefront of investors' minds is the need for Congress to take action on raising the U.S. debt ceiling. The debt ceiling is expected to be reached in early September and the debate around this issue will certainly impact individual investor and business confidence. Couple the debt ceiling debate with the upcoming presidential election and the “fiscal cliff” at the end of the year, it is not surprising sentiment and investor confidence is waning.