Is The Government Shutdown Good Or Bad?

Is the Government Shutdown Good Or Bad?

The latest government shutdown made me ask: Is The Government Shutdown Good Or Bad?

Looking back in time to see how shut downs impact the stock market, it’s surprising shut downs are nothing new.  Since 1970 no fewer than 18 shut downs occurred!

Nine of these came when the Senate was controlled by the Democrats and seven with Republicans. Negative stock market reactions met all early shut downs.  The last four, beginning in the Bill Clinton years, were greeted by positive price movements.  All time highs Friday continue this new trend.

My conjecture regarding the change in heart to shut downs is that in the 1970s we didn’t have much national debt.  Spending was roughly in balance with receipts.  In the 80s government spending took off and the debt became more of an issue.  Since then having the government shut down slows federal spending of printed money and the markets have mini celebrations.   The thing that changed the most is government debt. I could be wrong of course but it is interesting to see the flip since the debt has soared.

A remarkable start to 2018 continues in the stock market

The S&P 500 is having a spectacular year rising by about 5% already!  In many years a 5% rise would be considered a decent full year!

One new change is being made to Strategy 3. Login to and read the latest.

I am reminded that voting your political beliefs in the stock market is hazardous to ones financial health!  Happily is fully invested and has been since before election. We are riding one of the biggest stock market rallies in history!

It’s a year since President Trump was sworn into office.  Many thoughts about what is happening are on the tip of my tongue but this isn’t a rag it is a stock market newsletter!  A list of number of statistics regarding both in the stock market and the economy seems like a good way to use empirical evidence to inform our decision making process.

One such piece of evidence is the Trump rally is the greatest of any president except FDR.  WOW… Are you as stunned as I am?

Reading IBD this morning I saw their article.  So rather than craft something similar please read their analysis.

The Trump Economy, One Year In: A Success By All Measures