Last night, the President announced a bi-partisan deal to extend the tax cuts for another two years, which reduced uncertainty. This morning, the Dow futures are up 81 points at this hour. You'll recall the inverse relationship between uncertainty and the markets.
It should be a good day for the markets! It is probably not significant enough to say it should be a good week, so let's enjoy the day. Of course, uncertainty will start to rise again before the two year extension comes up for renewal, and we'll have to re-invent the wheel.
Since there is now some faint hope that bi-partisanship may actually be possible, I do hope they will tackle the more thorny deficit problem, where every ox will be gored, including Social Security and Medicare.
Nonetheless . . . Good Start!
