The Government Shutdown – What’s An Investment Advisor to Do?
- No one knows if this shutdown will be long-term or short-term.
- Only parts of the government have been shuttered and, when they reopen, many of the negative effects may go away.
- Outside events continue to affect the markets. For instance, Wednesday’s weak labor market report and the possibility of a default on government debt are bad news for stocks.
- My clients invest in the stock market for the long term and the shutdown may not have long-term consequences.
Occasionally, outside events do mandate a change in investment allocations. I’m not convinced that the federal shutdown is one of those events. The best strategy for a portfolio manager may be to do nothing at all.
Notes:
This presentation is for educational purposes only. To learn more about the topics mentioned and if they are suitable for you, consult an appropriate professional before implementing. Tax laws can change at any time.
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