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.

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