July 28, 2011 4:18 PM – Told You So

I keep writing that each day without a budget compromise would be a down day in the market. The market teased us today, opening up stronger but after 11:00 slowly gave back all the gains and more.

The S&P 500 finished the day down 0.3%, not too bad. Commodities were down slightly, precious metals were flat.

Investors who believe the issue will be solved are positioning themselves for the rally when the deal announcement is made. I think that’s wise which is why we are at normal stock allocations.

Bonds had a good day after a dismal week so far.

Waiting on Congress. I could think of better hands to be in.