Budget Bill: The Next "Headline Risk" for Stocks?
Budget Bill: The Next "Headline Risk" for Stocks?
Have you ever heard the phrase, “It’s a headline risk for the markets?”
The concept of “headline risk” refers to the potential impact of unsettling news events on financial markets.
It’s important to be aware that Congress will be working towards passing a budget bill for the 2024 fiscal year by October 1st.
While the Senate has made significant progress, the House of Representatives still has a lot of work to do with limited time available. In these kinds of situations, it is not uncommon for short-term bills to be passed.
Headline risk is nothing new. Recent examples include the anticipation leading up to Fed Chair Jerome Powell’s speech at Jackson Hole and markets seemingly holding their breath before each monthly inflation update.
Nevertheless, it is in everyone’s best interest to avoid a repeat of the high-profile debt ceiling talks in May 2023. This time around, it is expected that lawmakers will reach a resolution with minimal drama.
If you have any concerns about the current market situation or want to discuss how we navigate headline risk, please feel free to reach out. Our team is always here to help.
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