Monday, October 7, 2013

Deutsche Bank's Worst Case Debt Limit Scenario

Our best guess is no resolution until next weekend and then a relief rally.
From Business Insider:
...Analysts believe that if the U.S. hits the debt ceiling and eventually defaults on its liabilities, then the resulting market chaos could actually cause investors to dump risk assets and rush into U.S. Treasury securities causing U.S. interest rates to fall.

One risky asset class they are sure to leave is the U.S. stock market....MORE
debt ceiling stock market scenarios

Here are the S&P 500 futures via FinViz, 1674.50 last note the gap from last December: