The government has shut down again, and if you’re watching the news, you might be feeling anxious. The headlines make it sound like a crisis. National parks are closed, federal workers are furloughed, and analysts are warning about economic consequences. As financial advisors, our message is simple: take a deep breath and stay the course.
Government shutdowns are a recurring political event, not a financial emergency.
Since 1980, we've seen this happen 15 times. Each time, the media treats it as unprecedented, politicians eventually reach a compromise, and life goes on.
What History Actually Tells Us
Here's what might surprise you: stocks typically perform well during these events. More than 70% of the time, the market has actually risen during shutdowns. Looking at the year following these events, the S&P 500 has averaged gains of around 15.5%.
The real danger isn't the shutdown itself—it's making emotional decisions based on alarming news coverage.
Peter Lynch put it perfectly: more money is lost preparing for market corrections than in the actual corrections. When you sell quality investments because you're spooked by headlines, you're potentially costing yourself significant long-term returns.
Where Real Wealth Gets Created
It’s better to focus on what actually drives investment returns: strong companies solving real problems for customers.
Think about the most successful companies of the past decade. They didn't succeed because Congress passed a particular bill or avoided a shutdown. They succeeded by innovating, serving customers better than competitors, and growing their businesses quarter after quarter.
Companies like Nvidia, Amazon, and Tesla didn't build trillion-dollar valuations because of favorable government operations—they did it by creating products and services that transformed their industries.
The Noise vs. The Signal
Financial media thrives on crisis. It's their business model. Scary headlines drive clicks and viewers. But what's good for cable news ratings isn't necessarily relevant to your long-term financial plan.
Over the past decade, we've been told to worry about countless "market-killing" events: Middle East conflicts, volatile oil prices, rising interest rates, inflation concerns, trade wars, and more. Yet the market has delivered strong returns through it all, with the Nasdaq up over 470% during this period.
Where to Actually Focus Your Attention
Instead of Washington drama, pay attention to the fundamental economic shifts happening right now. We're witnessing one of the largest infrastructure buildouts in history—the development of artificial intelligence infrastructure.
Major technology companies are investing over $350 billion this year alone in AI data centers and related infrastructure. This single-year investment rivals historic projects like the Apollo program or the Interstate Highway System when adjusted for inflation.
This kind of massive capital deployment creates real economic value and drives returns for well-positioned companies and their investors.
An Action Plan During Market Noise
When political headlines dominate the news cycle, remember this simple principle: "This too shall pass."
Political standoffs are temporary. What endures are quality businesses that grow cash flows by solving important problems with better solutions.
At Aspire Planning Associates, our guidance is clear:
Don't make investment decisions based on short-term political events
Stick to your long-term financial plan
Focus on owning quality companies with sustainable competitive advantages
Ignore the daily noise and keep your eyes on your long-term goals
There are always legitimate reasons to review and adjust your portfolio. Government shutdowns—which historically resolve quickly with minimal market impact—aren't one of them. The real risk to your financial future isn't a temporary shutdown in Washington. It's letting media-driven anxiety push you into abandoning a sound long-term investment strategy. Stay focused on what matters, and don't let the theater distract you from your financial goals.
If the headlines have you questioning your financial direction, our team at Aspire Planning Associates can help. Call us at (925) 938-2023 to schedule a conversation about keeping your financial plan on track and aligned with your goals.
