We did go over, but hung on for dear life!

Thankfully, this week’s inaugural patriotic pageantry gave us a brief respite from Washington’s seemingly endless negativity. Following the two-month, post-election televised soap-opera, the 11th hour (perhaps 13th hour?) agreement between the Administration and Congress left most participants dissatisfied and the rest of us at their mercy in future negotiations on spending cuts and the debt ceiling (again?).

Most importantly, the agreement allayed the full force of the scheduled tax hikes and spending cuts. As details of the bill are now well-known and acutely analyzed, allow me to reflect on economic and financial market implications:

Best wishes to all for a bright 2013! The financial markets will surely keep us entertained.