So glad you asked. The Year of the Rabbit is off to a hoppin’ good start in the markets. In fact, stocks hit what’s called the “January Indicator Trifecta” — gains in the seven trading days around the new year, gains in the first five days of the month, and gains for the month overall. Even US bonds are showing signs of life. A decline in consumer spending and inflation, as well as softening home sales, point to signs of a slowing economy, and that gives many hope that the Fed will continue easing up on future interest rate increases. Some experts are even starting to think that the economy might achieve that soft landing, especially after the latest gangbuster jobs report, which made it that much more likely that we’ll avoid a recession.

But above all of that cautious optimism looms a dark cloud: the US government’s debt capacity, and the possibility — however remote — of a US government default if Congress can’t come to an agreement and lift the debt limit. We’ve been here before — 78 times, in fact, since 1960 — but will this time be different?

I explain the debt ceiling and more in this month’s market breakdown. Take a peek at the link below.