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The 2012 Election is Very Consequential for Investors

Last week, seeking to avoid a government shutdown, the House Appropriations Committee introduced a Continuing Resolution (CR) for fiscal year 2012, which begins on October 1, 2011, that would fund government agencies through November 18, 2011. Last year, the first of seven CRs extended government funding until December 3. The final fiscal year 2011 Appropriations Act was signed by the President on April 15, 2011, when the fiscal year was over half finished. The markets disliked the uncertainty and the bickering among a divided Congress.

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