The recent government caused fiasco comes with an upside which might support the markets. The conventional wisdom is that Fed tapering is off the table until next year, inflation will remain low and the economy will continue to grow, slowly. Tim Hayes from Ned Davis Research said in today’s WSJ that “This is the best environment for stocks right now. You don’t have rising interest rates becoming a problem. You don’t have inflationary pressures. You do have earnings growth.”

“When the unemployment rate is above 6% and falling, that is the best situation for the stock market” based on the SP performance since the 1940s, said Hayes.