Global Markets breathed a sigh of relief as lawmakers agreed to reopen the US government last week. Markets,
particularly equities moved up sharply, gaining on average about 2%. The deal extended the debt ceiling and
created some much needed time for lawmakers to discuss these topics in greater detail. However, the new deadline will arrive again within the next three months and appears to portend that the activities in Washington DC will likely remain in the news headlines. In one respect, this deal appears to be more of a “ceasefire”. With Washington, D.C. politics reaching historic lows in public opinion polls, the agreement also creates an increased focus on the size and scope of government, which may yield a far more productive balanced approach to shaping the budget of the US for the future. So far, it appears that calendar year 2013 will be remembered mostly for what did not happen.