“No amount of sophistication is going to allay the fact that all your knowledge is about the past and all your decisions are about the future.”
-Ian Wilson
Here’s what you need to know this week:
- Stocks gain despite the government shutdown
- Negotiations continue but uncertainty remains
Upcoming Event
Before we dive into this week’s newsletter I’d like to highlight an upcoming event hosted by our own Brett Valentine focused on protecting and growing your wealth for retirement. This event will be hosted at Hefner Grill on Monday, October 28th from 6:00 – 7:30 PM and includes a complimentary dinner. Click the link below to register for the event:
Unbothered
The US government officially shut down last Wednesday after the two parties in Congress failed to reach an agreement extending government funding. However, you wouldn’t know it by looking at the stock market. In fact, markets have marched higher almost every day since the shut down and are still hovering near all-time highs.
If you read last week’s newsletter then you may remember I said not to panic because of a shutdown and this is exactly why. Every shutdown is unique and has its own causes and contours. It is possible that we see a drawdown if the shutdown becomes a protracted standoff, but for now the market seems unconcerned.
Shutdown Latest
This has been a slow market week in light of the shutdown. We won’t receive any new economic information until the shutdown ends, and in the meantime investors seem content to tread water. The first two pressure points of the shutdown will be when government employees and military service members miss their paychecks on October 10th and 15th, respectively[1].
The main sticking point in negotiations is healthcare subsidies. The subsidies, which help 24 million financially struggling Americans access health insurance through the Affordable Care Act, are set to expire at the end of this year[2]. Democrats are pushing to include a subsidy extension in any funding bill while the Republican majority has opposed an extension. President Trump stated he is open to discussing extending the subsidies but only after the government has reopened. For now, it appears the two sides are at an impasse.
What Else
- The Supreme Court term officially began on Monday and will rule on a bevy of President Trump’s decisions such as tariffs, removal of agency heads and birthright citizenship
- Hamas agreed to release all remaining Israeli prisoners as part of a broader ceasefire agreement to end the war in Gaza
- Negotiators from Israel and Hamas will meet in Cairo this week to discuss the remaining details of the ceasefire agreement
- President Trump announced a $10 billion bailout for soybean farmers; US soybean sales have fallen 81% since the implementation of the President’s tariff plan
- The price of gold broke above $4,000/oz for the first time in history
What We’re Reading
Three US physicists were awarded the Nobel physics prize due to their experiments that revealed quantum mechanics in action. Their discovery is expected to lead to major breakthroughs in computing and telecommunications. Click below to learn more about the physicists and their remarkable discovery:
What’s Happening Downtown
The “Museum of Pumpkinville” has opened in the Myriad Gardens and runs through October 26th. This event features more than 50,000 pumpkins and gourds arranged to replicate popular museum installations. Tickets are $9 per person and can be purchased online, click below to learn more:
To read more from our blog, click here
Written by: Kane Ogle, CFP®
Steve Beck, Kane Ogle, CFP®, Amber Eduvigen, CFP®, Cale Olbert, CFP®, Brett Valentine, CFP®, Brandon Ingerson, Bill Daniel, Sam Postich, Jenni Hess