Equity Markets Shrug off Government Shut Down, with Denver Nowicz, Wealth for Life, Scottsdale, Arizona

Going back to the 1970's, there have been 17 government shut downs.  This one could drag on a little bit but when you look at the impact it will have on the markets, Denver Nowicz, financial advisor in Scottsdale, Arizona, says that historically, it hasn't been too great.

Markets tends to be a little bit negative, in the 2-3% range and increases to the 4-6% range after the shut down is over, says Nowicz, who adds that the uncertainty of the looming debt ceiling adds to things.  The government shut down could certainly push all the way out to the debt ceiling and all of this uncertainly prevents people from going about as "business as usual," Nowicz says.

When you look at history, usually a government shut down does not cause huge swings in the markets but if people are starting to worry about that, then Nowicz says they should be looking at their overall portfolio.  Beyond the shut down and debt ceiling, there's always events that could suddenly come up and push the markets down.  That's where Nowicz keeps his clients focused on - having portfolios that can weather any storm. 

Denver Nowicz is with Wealth For Life and can be reached at 480-970-5663.  Nowicz spoke with Retirement News Today, providing online, on-demand, retirement news video content.

 

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