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Graff: Sequester is Likely

It looks like the so-called sequester — automatic cuts in government spending mandated by a 2011 budget compromise — is going to happen on March 1, says Brian Graff, Executive Director/CEO of NAPA and ASPPA. “It looks like there’s no way Congress and President Obama are going to come up with some kind of solution to avoid sequestration,” between now and March 1, when the sequester is set to take effect, Graff believes.

For advisors, the key question is how the sequester’s expected impact on the economy and the market will affect clients, plan sponsors and participants in terms of portfolios, Graff notes. But it looks like the answer to that question will have to play out after the sequester goes into effect. “Sometime in March, depending on how the economy and the markets react, they may come up with some kind of solution,” says Graff.

For more analysis from Graff on the sequester, click on the “Washington Update” video at right.

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