Now that the Olympics are over, all eyes are back on the European debt crisis. Mervyn King, the head of the Bank Of England, said that there is no solution in sight and we agree. However, the US markets have grown weary of this story and are ignoring the debt burden of Europe. The market pundits believe the valuations are inexpensive. This is generally accurate if you look at historical averages, but we believe the valuations are justified (trading at almost 14 times 2012 earnings) considering the slow growth and high debt environment. Going forward, the US equity markets will focus on the elections in the months to come. After November, the US and the rest of the world will have to get back to business and worry about the Fiscal Cliff.