As we approach what may be the first federal government shutdown in 17 years, markets continue to be in turmoil. Long-term investors need to remember that we believe this will be a short-term news event, not a long-term market event. It was just 10 months ago we went down this path. Like Yogi Berra said “it is deja vu all over again”. The bad part of this current debate is that it appears the fix may only be for a couple months so the turmoil may continue. (Bloomberg/Associated Press)
Today marks the end of the third quarter. Even at the pace of the current sell off it looks like both the month and quarter will be positive for the S&P 500. (Fox Business News)
China’s factory activity expanded at a slower than expected rate in September according to the HSBC Purchasing Managers Index. The measure showed expansion at 50.2 slightly higher than August, but still below what was expected.
Politics are also driving markets overseas. It appears that the coalition government in Italy is falling apart. That has sent Italian bond interest rates spiking. European markets are down about 1% across the board. (NBC News)
Under the category “is he a dinosaur or a visionary”. Time Warner CEO Jeff Bewkes says he does not think that the soon to be released Intel TV and others like Net Flix will disrupt the traditional TV distribution model. He says there is just too many technical difficulties to overcome. And they said man would never fly. (Variety)