MARKET WRAP UP: GOVERNMENT SHUTDOWN EDITION

What do superheroes and online video streaming services have in common?

They both have movies nominated for Best Picture at the Oscar’s this year. Which, we’re only 30 days away from. That’s 5 days less than the U.S. Government Shutdown, which entered its 35th and final day on Friday. This week will also mark the fifth straight week of gains for the Dow.


Government shutdown by the numbers

  • 10.3% - The amount the S&P 500 has risen since the beginning of the shutdown.

  • 21 - The number of days the previous record holder lasted.

  • 0.13% - The estimated amount the shutdown lowered quarterly GDP growth per week.

Effects from the government shutdown clearly did not spread to the markets which posted their best-ever shutdown performance. But it did take its toll, as federal workers missed their second consecutive paycheck this week.

Also, shortages of workers led to widespread delays at airports across the country. With delays at airports appearing to be a watershed moment, Bloomberg reported that Airport Problems Show Trump Has Already Lost the Shutdown Fight

And it looks like they may have been right, at least for now. Unlike the markets, the government was unable to take a holiday from their stalemate on Monday. They were, however, able to reach a brief agreement as lawmakers came to a  short-term funding solution on Friday.

This headline from Forbes does a good job of summing things up: Shutdown Ends: Government Opens For 3 Weeks, No Funding For Wall.

Times like these make having a plan for your investments critical. Even more important, is sticking to that plan. If you haven’t done so, consider putting together an Investment Policy Statement for yourself. This document can serve as a reference for when you begin to question your investment decisions. It can also serve as a reminder for why you chose those investments and what your strategy is for them going forward.

For the do-it-yourselfer -- Here’s an article from Morningstar on  How to create an investment policy statement.

Further Weekend Reading

In this article from CNBC, the Head of the group that calls recessions says the government shutdown won't cause one.

For those in retirement, here’s an article on Why retirees shouldn't fear a bear market.  

Articles about the housing market I’ve been reading -- Existing home sales slide to a 3 year low as housing market stumbles from Marketwatch and The housing market looks like it's cracking. That hasn't stopped housing stocks. From Barron’s.

Was oil, not tax stimulus, responsible for increased business investments in 2017? One columnist thinks so in the Marketwatch piece,  Opinion: So much for the Republican tax cut as a game changer — the investment boom is fading fast

And last but not least, How Google collapsed from Hackernoon.


I hope everyone has a fantastic weekend and stay warm out there. We’ll see you again next week!


*These are the general views of Stanton Burns and they should not be construed as investment advice for any individual. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Stanton Burns does not maintain positions in any securities mentioned as of the writing of this article.