The continuing fiscal “fiasco” in Washington will be the key concern for investors going in to 2014, according to Alastair Newton, senior political analyst at Nomura investment bank.
Markets might have been relatively sanguine during October’s partial Government shutdown, but Newton believes this muted reaction to the fierce political battle could encourage right-wing politicians to push the limits a little further.
“Fiscal uncertainty looks set to run into (the first quarter of 2014), which could delay tapering to (the second quarter of 2014),” he said in a research note released Monday.
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