After the Election: The Sequestration Countdown

WASHINGTON, DC-Within a week we will know the results of presidential election, absent another replay of the disputed 2000 election as some pundits suggest may happen. Even assuming we have a President Obama or a President Romney on Nov. 6, the guessing game about the financial direction of the country will still be on. That is because as of right now, sequestration–a component of the Budget Control Act of 2011—is set to go into force with across-the-board cuts in most spending areas.

Only a last-minute reprieve by a lame duck Congress can stave it off. Wall Street is counting on this happening, but LPL’s chief market strategist Jeff Kleintop in Financial Advisor magazine points out that if emotions are running strong after the election Congress might refuse to forge a solution.