<p>Is it time to move everything into money market accounts until we see how this falls out?</p>
<p>See what the return on MM and CD is.</p>
<p>One of the defense companies that I follow has dropped by over 2/3rds over the last two years despite a lot of promising technology. I think that lower defense spending and the promise of further defense spending cuts has had a big impact on them.</p>
<p>On the broader market, some companies will do well and some won’t with the results - so picking the companies that will do well, despite budget cuts should produce better results. Of course that takes some effort in finding those companies.</p>
<p>Also note that the Fed is printing $85 billion/month and has pledged to do more if needed to get unemployment down.</p>
<p>Many economists think a sequester on the scale that’s being talked about would immediately result in the loss of 1 million to 1.4 million jobs, probably enough to push the nation into another recession. I’m not sure I’d be buying equities right now. It’s hard to see who the “winners” are in that scenario.</p>
<p>[Why</a> Budget Cuts Could Throw Economy Into Recession](<a href=“http://www.cnbc.com/id/100431628]Why”>Why Budget Cuts Could Throw Economy Into Recession)</p>