“Toto, I’ve a feeling we are in Kansas anymore.” ~ Dorothy Gale, The Wizard of Oz
The government shut down due to Congress being unable to come up with a budget deal, forcing about 800,000 federal workers off the job and suspending selected federal programs.
On a recent trip to New Orleans, our shuttle driver said, “You are now leaving the real world and entering New Orleans.”
Substitute Washington, D.C., for New Orleans in that statement.
Today on CNBC Citigroups, chief economist Willem Buiter said Washington has become the “Land of Oz.”
Most people probably will not notice the “shut down.” Unless the men and women in Congress truly are crazy (odds are currently 60/40 against that here in Las Vegas, where I am currently attending a conference), the two sides will likely get together and pass a continuing resolution or other legislation and the shutdown will be a fading memory.
In the longer term, these types of events erode confidence in our government – but that is for another blog post.
This leads us to – how to protect yourself financially in times of uncertainty?
One of the best ways is to be sure you have proper asset allocation for your personal financial situation and risk tolerance. The right mix of equities, bonds and cash can offer you good returns.
You can sleep at night knowing there is a good chance your portfolio can weather stock market volatility and macro uncertainty.
James Mathis, CEO of Aspen Equity Partners (AEP), believes in enriching his clients’ lives by identifying, preserving and achieving their goals. Aspen partners with clients through every leg of their race ~ asset management, investment advice and retirement planning. Contact him at email@example.com.
Disclaimers: The ideas presented here are for illustrative purposes only. This does not reflect the performance of any specific investment. It should not be assumed that past performance in any way relates to future results. The information herein has been derived from sources believed to be reliable, but this is not a guarantee as to the accuracy and does not purport to be a complete analysis of the security, company or industry involved. An investor should consider, before investing, whether the investor’s or designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s 529 college savings plan. 529 plans are subject to enrollment, maintenance, administrative and management fees and expenses. Non-qualified withdrawals are subject to federal and state income tax and a 10% penalty. Please consult with your financial advisor and tax advisor to determine the strategy that best suits your individual needs.