After all the political posturing and daily craziness, the government finally avoided a catastrophe and raised the debt ceiling and agreed to cut spending. It appears that this deal is good for GOP but not great for Obama. The stock market is up on the news but there should not necessarily be a correlation.
It will be interesting to see if this clears the way for apartment investors to come back out and start buying. I know that many owners have been on the side lines waiting for this to shake out.
Another key indicator will be interest rates and the bond market. If rates stay very low investors almost can’t help window shopping for cash flowing assets like multi-family buildings in good locations. Over the past few months institutions bought U.S. bonds regardless of the impending debt ceiling crisis indicating that nobody ever expected the U.S. to default.
So what does all this mean? The media hype is always greater than the event itself. U.S. currency will be safer than other currencies for the foreseeable future, and Obama has not made enough friends in Washington.