As I write this, it’s a Friday afternoon, and Washington is again entangled in a financial deadlock. This time, it’s the approval of our nation’s budget and a looming government shutdown should an agreement elude us by tomorrow’s deadline. We have seen this political theater before; quite frankly, it is all too familiar with the most recent act staged in May over the debt ceiling. Then, the two sides found a middle ground in an agreement to suspend the debt ceiling through January 2025 in exchange for certain spending limits on future non-defense expenditures. However, attempts to reevaluate those former agreements are intertwined with the present deadlock.
Here is the sad truth: Washington has long been a bastion of dysfunction and gridlock. However, the dysfunction is notably intensified in our current environment of endless media outlets that pander to distinct political silos and biases, reducing the incentive for politicians to fulfill their responsibilities and seek sensible compromise.
The silver lining is that we have a long historical precedent of shutdowns, and when markets have been impacted, they have generally rebounded quickly once an agreement is reached.
Want to learn more? Here is some information regarding previous shutdowns:
- A history of government shutdowns. The 14 times funding has lapsed since 1980.
- Government shutdowns in the United States.
So, rather than stressing over the current situation, you should turn off the news or put down your device, go about your life, and do your best to have a great weekend. If you celebrate Halloween, this is a perfect weekend to dig out your decorations and make your home spooky. Rest assured, we are monitoring this closely, and if a shutdown significantly affects the markets, we will look for opportunities to take advantage of this by rebalancing. Meanwhile, we remain cautiously optimistic that Washington will surprise us and do their job.
Lastly, as October is Cybersecurity Awareness Month, we will share important information and best practices throughout the month to assist you in safeguarding your online presence. So, watch for valuable insights on fortifying your digital life, and have a great weekend!
Key Economic News:
- The Fed’s favorite inflation indicator rose less than expected in August.
- Here’s what a government shutdown would mean for your wallet.
- Will a government shutdown hurt your investments? ‘The headline answer is no” says analyst.
Quarterly Market Update: A Delicate Balance
By Schwab Market Perspective
- Job growth has slowed.
- S&P 500 breadth has not matched performance lately.
- Yields are at the highest levels in a decade and we don’t expect them to stay that high for long.
What The Fed’s Latest Projects Mean For Long-Term Investors
- The Fed expects to keep rates higher for longer.
- The Fed is also shrinking its balance sheet to tighten conditions.
- Oil prices have rebounded in recent months.
Establishing Your Schwab Online & Mobile Access:
To Create Your New Schwab Login ID and Password:
- Have your Schwab or TD Ameritrade account number handy and click: www.schwaballiance.com.
- Select “New User?” – blue link under Log In (middle of screen) and follow the prompts.
Please Join Us For A Special Client Dinner and Shred Event
We’re excited to welcome Weston Wellington, Vice President of Dimensional Funds, and distinguished market historian, as our keynote speaker for the upcoming October client dinner event. After hosting Weston in 2017 and receiving overwhelmingly positive feedback, it became evident he needed an encore.
In 2006, while I was evaluating Dimensional Funds, Weston’s insights greatly informed my decision. For years, he penned an annual article juxtaposing Wall Street analysts’ forecasts with actual year-end outcomes. The recurring theme is unmistakable: the predictions of economists and Wall Street analysts are as reliable as those of astrologers, warranting a healthy dose of skepticism.
Stay In Your Seat!
Weston Wellington’s “Stay in Your Seat” presentation is an entertaining and insightful journey through over five decades of investment news headlines, media narratives, and the real-world outcomes for investors who followed the implied advice. You will walk away with a better understanding of today’s media landscape, recognizing how little things have truly changed besides the surge of media outlets.
Additionally, you’ll better understand how and why your money is invested the way it is.
When: Wednesday, October 18th
Where: Hilton – West Palm Beach | 150 Australian Ave. West Palm Beach, FL
Time: 6 p.m. to 8 p.m.
Spots are filling up quickly and we are nearing capacity.
If you wish to attend, please let one of our team members know ASAP!
About Wes Wellington:
Weston Wellington, Vice President of Dimensional Fund Advisors, has over four decades of investment industry expertise and is recognized as one of the firm’s most captivating speakers. Weston’s presentations illuminate Dimensional’s distinctive evidence-driven investment approach and the merits of an equilibrium based investment strategy as an effective avenue towards investment success.
Additionally, Weston critically assesses contemporary financial and investment media, underscoring why investors are unlikely to hear about this approach from the usual sources of financial advice.
In addition to the presentation, we will have an on-site shred truck to allow you to dispose of your personal documents securely and safely!
The Forum Club of the Palm Beaches
For over four decades, The Forum Club of the Palm Beaches, a non-partisan political and public affairs organization, has welcomed a parade of illustrious speakers, including former Presidents, U.S. Supreme Court Justices, and influential thought leaders whose words and deeds shape our world.
As a proud supporter, Mariaca Wealth Management is delighted to sponsor a table for our local clients and friends at these events. Kindly note that seating is limited and available on a first-come, first-served basis. If you’d like to attend a particular luncheon, please reach out to Victoria, at email@example.com.
Upcoming Forum Club Events:
U.S. Congressman and Chair of the January 6th Committee, Bennie G. Thompson
Monday, October 2, 2023 at 12 p.m.
REGISTRATION IS CLOSED FOR THIS EVENT.
Former Congressman and CNN Political Commentator, Adam Kinzinger
Tuesday, October 24, 2023 at 12 p.m.
REGISTRATION IS CLOSED FOR THIS EVENT.
This past weekend, with the Denver Broncos playing in Miami, I had the golden opportunity to take the kids to their first football game, an experience that unfolded quite differently from what I had envisioned over the past seven years. Generally, I don’t impose my preferences on my kids, but I did expect they would rally behind the Broncos because they know how crazy of a fan I am. To my relief, Sofia did, and I am sure her fondness for horses, which she shares with Ande, informed this decision. Joaquin decided to support the Dolphins – a very smart choice as they DESTROYED the Broncos. We all had a great time, and Joaquin made many new friends.
Our Weekly Wave is all about giving you good insights and valuable information. While we’re good at managing wealth and financial planning, please remember; this content is for informational purposes only and is not legal, tax, investment, financial, or other professional advice. So while we hope to provide insightful and helpful knowledge, please don’t take it as official guidance.