Highlights:
- Economy is hamstrung by a host of policy uncertainties – government shutdown, debt
ceiling, and timing of Fed tapering. - After rising sharply from May through August, interest rates fell in September; however, we expect rates to resume upward trend once budget issues are resolved.
- We believe the current weakness in the economy is a short-term problem; thus, there is a window of opportunity to take advantage of what we expect to also be a short-term dip in interest rates.