A sigh of relief was heard throughout the financial markets when the U.S. Senate passed a much-hoped for bill Wednesday evening to end the government’s partial shutdown, effectively suspending the U.S. government’s debt ceiling limit until February 7 and providing funding for full government services until January 15. So, that was fun, eh? Why don't we do it all again in January? Don't be square, I’ll see you there.
Oh by the way, the estimated cost of the 16-day shutdown to the U.S. economy? A mere $24 billion.
While the resolution was welcome news, it only provides short-term relief, like the band-aid on my knee (more on that later). That said, the expected recovery was awe inspiring and I’ll start with yesterday’s activity:
First, the Dow closed the day down a modest 2 points and is some 300 points from its all time high. Second, the S&P 500 closed yesterday at an all time high just a month since the last all time high was recorded. Third, the TSX broke through 13,000 yesterday and is now at the highest level since July 2011 (13,123 as I write this).
Instead of an “I told you so”, I’ll remind investors that the last few weeks of political and market upheaval have once again shown the importance of maintaining a long-term perspective in the face of short-term market drama. Time and again, history has demonstrated how short-term volatility can provide buying opportunities for investors while keeping focused on the long-term strategy.
So moving right along from this hypothetical band-aid to the real one. Last week, I had the privilege of being a guest on Career Buzz, an inspiring and real-talk radio show on CUIT 89.5FM in Toronto, hosted by the talented Mark Franklin of Career Cycles. On my way back to the office after the show, I was catching up on my e-mails and not really paying attention to where I was walking (don’t you hate that when it isn’t you?) and of course, I bailed….like I always do. Sigh.
Don’t worry, I’m going to live.
Enjoy the weekend.
Investment & Wealth Advisor
Chaaban Wealth Management Group