Wall Street Webcasting presents exclusive video of Rich Gordon, the highly regarded Fixed Income Market Strategist of Wells Fargo Securities (NYSE: WFC). This week Gordon asks the question, are investors too comfortable, given the political unrest amongst Democrats and Republicans?
The VIX has fallen by 900 basis points since it peaked in December and Gordon believes “the greatest threat to the continued stability and upward direction on the prices of risk assets is an increasingly fractured political climate in Washington.” The debt limit will be reached in late February and March, and sequester cuts will go into effect. The projection of economic growth could fall by half a percent or more in 2013 if all of the sequestration cuts are made.
To hear the GDP expectations for 2013 and a more thorough explanation of how the unrest in Washington could affect economic growth for the year, tune into Wells Fargo Securities’ newest video.
Please visit the following link to view the video: