The latest Market Roundup from our Capital Market Strategists Dr. Brian Jacobsen and Jim Kochan is now available.
September was a relatively calm month when compared with August. Of course, considering August brought us the U.S. debt-ceiling debate, the U.S. debt credit rating downgrade, the announcement that the Federal Open Market Committee (FOMC) would keep rates low until the middle of 2013, and some intense meetings between European leaders over debt problems in Europe, we were hoping for a little reprieve in September. Instead, September was more like a "difference of degree" rather than a "difference of kind." October and November will likely prove to be pivotal months in the developments in Europe and the U.S. In Europe, the International Monetary Fund, the European Central Bank (ECB), and the European Union are expected to propose how they will keep their heavily indebted members afloat. In the U.S., the Joint Select Committee on Deficit Reduction will be haggling and harrumphing up to its Thanksgiving deadline on how to deliver $1.5 trillion in deficit reduction over the next 10 years. These factors will likely conspire to keep market volatility high.