After a weekend with no signs of compromise between the House of Representatives and Senate, the United States government stands directly in front of its first partial shutdown in nearly two decades. 800,000 federal workers are anxiously awaiting midnight, tonight to see if Congress will pass a stopgap spending bill and bring them back to work tomorrow morning. Both Republicans and Democrats in Congress say they want to avoid a shutdown, but each side is standing firm in their convictions.
The Senate convenes at 2 p.m. today and is expected to reject the House's latest plan, which would fund the government in return for a one-year delay in the President's health care bill along with other provisions. The Senate Democrat majority will then send a government funding bill back to the House of Representatives, where they will only have a few hours to decide how to move forward. A short-term shutdown could have a small affect on financial markets, whereas a prolonged shutdown could spill into the debt ceiling deadline, creating enormous uncertainty among investors and business owners.
Regardless of your political backdrop, financial markets rarely take well to political uncertainty. As the seconds tick closer to midnight you may worry about the functionality of our government, but let your financial advisor ease your worry about the stability of your investment portfolio while ensuring that it continues to meet your long-term goals.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).