Investing with Debt Ceiling Uncertainity

I learned something yesterday that I feel is worth sharing. The government has closed before when the debt ceiling was being negotiated.

Official shutdown dates in the last 20 years:
• October 5 to October 9, 1990 (3 days)
• November 13 to November 19, 1995 (5 days)
•December 5, 1995 to January 6, 1996 (21 days)

Now what did the market do during that time? It went up. I am not predicting this is the time to invest, rather only that this is not the time to panic.
I believe with global markets “this time it could be different” – the quote that always we can not predict until after the fact. Yet, this is often quoted on market rallies, real estate increases and the like.
What should you do? Decide how any government change would affect you in the short-term. So I am recommending what I always recommend – have money in cash for the next year, invest appropriately to your goals and keep debt low.

Whatever happens next, will be for the short-term so do not lose sight of the long term.

Christine D. Moriarity, CFP