Ali Criss, CFP�

In the past few weeks, Americans have been swept through a political media frenzy charged by the current debt ceiling, the Affordable Care Act (aka Obamacare) and the subsequent government shutdown.  Wading through all of the news channels, blogs and market information has been mind numbing to say the least and investors have yet again started the almost routine progression from anxiety to fear about how the markets may react.

In the past 72 hours, the DJIA added more than 500 points as investors grew more confident in a potential debt ceiling resolution.  Over the weekend, Congress and the President will be negotiating in an attempt to find a solution prior to the October 17 deadline.   It is improbable that the House and Senate will allow a default on our debt. 

It remains to be seen what effect the government shutdown will have on the volatility of markets, but, historically, the average shutdown lasts about five days and the market usually responds with an 18% increase over the six months following a shutdown. � This, if anything, would signify a buying opportunity. Currently we are on day 11 of the government shutdown and consumer confidence is at a nine month low. �

This week's market is a perfect example of why it is important to not let current political and economic events affect your long term investing strategy.  We will keep you informed of the events that take place in the coming weeks and will be here if you would like to discuss your portfolio or the market further.

�Benjamin, Jeff. "What to tell clients about the shutdown, debt ceiling issues".  Investment News, 10 Oct 2013.

�Leong, Richard. "Washington drives U.S. consumer sentiment to nine-month low". Reuters. 11 Oct 2013.