If you liked the last fight in Washington, you're going to love the next one, and the one after that, and probably the one after that too. This as Congress's hard fought bipartisan solution to the debt-ceiling/shutdown crisis was to schedule three more of them over the next four months.
For some, the concept of gridlock in the Capitol is a welcome occurrence, but for Jeff Saut, chief investment strategist at Raymond James, the benefits of locked down lawmaking fade over time. "(Gridlock) has been good in the short-term but longer term it is not good," he says in the attached video.
While some expect the animosity will worsen, Saut was confident leading up to the debt ceiling that an 11th hour deal would be struck, and thinks the next three deadlines will prove to be even easier to resolve.
"I think the political environment has been softened up by what's just happened. I think you'll see willingness to give on both sides of the equation," this former D.C. resident predicts. In the meantime, he thinks stocks will soon begin to refocus on earnings, economics and the Federal Reserve, adding that "the story on those three fronts is pretty good."
One of the key reasons Saut is bullish now is because he says the world is profoundly under-invested in U.S. equities. As a result he thinks it's a pretty compelling time to commit capital to stocks, once it become clear if this latest record run is a fake-out or for real.
"I'm still a little cautious here and want to see how it plays out the next couple days. If we're in a new secular bull market, which is what I think we're in, a few days is not going to matter. You're talking years ahead on the upside."
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- Raymond James