Chris Bertelsen, chief investment officer at Global Financial Private Capital, says the slump is an opportunity for investors to pick up stocks at a good price and lock in high dividend income. Lockheed Martin, for example, pays a dividend of 5.3 percent on its stock, more than double the average rate of 2.1 percent in the S&P 500.
In any event, investors know full well that the most important, and politically sensitive, U.S. budget problem is far from resolved: controlling the runaway growth in spending by government entitlement programs like Medicare.
‘‘What we need are entitlement cuts in the long run, rather than discretionary cuts in the short run.’’ says JPMorgan’s Kelly. ‘‘It’s obvious.’’