Salient to Investors:
Disruptions to the economy prompted speculation the Fed would maintain the pace of its $85 billion in monthly bond purchases. BlackRock Inc. and Pacific Investment Management Co. say the Fed will postpone tapering as a result of the debt-ceiling debate.
Russ Koesterich at BlackRock said the disruption and uncertainty will result in slower tapering.
Mohamed El-Erian at Pimco said the Fed may now have no choice but to stay longer in its intense policy experimental mode due both to the likelihood of weaker data and a perceived need to take out insurance for the economy against future political dysfunction.
The S&P 500 is at 16.5 times earnings with the 2nd broadest year-to-year gains since 1990.
Read the full article at http://www.bloomberg.com/news/2013-10-17/u-s-stock-index-futures-drop-as-debt-ceiling-raised.html
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