U.S. Budget Deal: Washington's Holiday Miracle

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Dec. 30 (Bloomberg) -- Gamco Investors Portfolio Manager Barbara Marcin discusses the U.S. budget deal on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Getting along at the end of the year.

On the day of the taper, markets boomed.

I think that reaction in the market, the springboard was set by the day before, the announcement that paul ryan and patty murray had come to a bipartisan budget agreement, which is the opposite of what we saw at the end of the last previous two years.

All of a sudden there's some optimism that if the government can get out of the way of causing these disruptions and economic uncertainty, then you could have a stronger economy.

One of the big reasons for the lackluster recovery is the unwillingness of corporations to spend and invest in higher because they lack confidence.

If you could get confidence in addition to the slowly recovering economy -- that is a lot of faith in the u.s. congress.

There are still a lot of things they will have to address in one would hope a bipartisan fashion.

It remains to be seen if it is a trend, but it is something different.

I think is the time of year when you are optimistic.

December is a strong finish, the strongest return of the s&p 500 since 1997. we are saying maybe will take off and 2014 instead of crawling along like we did in 2013. 4.1% gdp growth.

Shocking.

Very strong growth.

In a good way.

We are expecting maybe 3.5% for the fourth quarter, which makes it a decent year.

The fed refused to taper in september after having signaled it.

We are sliding out of the new normal?

I don't know what the new phrase will be.

Do you think we will have fits and starts in the new year?

What is your outlook for the first few months of the year in terms of the market?

It has been consistently strong.

There is also the lack of volatility.

It has been a one-way street.

It would make sense to have a correction, but going into next year, while the federal reserve has basically said the economy seems to be on a sustainable path, at the same time they are continuing a massive stimulus program.

So it is the best of all worlds, thinking the economy could be firmer but the fed is still -- you do have people who will see their bond funds and think, omg, i need to get out of stocks and get on the bus with everybody else, right?

2013 was the first year where you had net equity inflows, the first year since the downturn.

This text has been automatically generated. It may not be 100% accurate.

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