Political Stalemate in Washington DC

Political Stalemate in Washington DC.

Annual-Returns-and-Intra-year-DeclinesThe political stalemate in Washington DC over both federal government shutdown and federal debt limit related issues has the potential to cause significant volatility in stock and bond prices. A little perspective in stock price volatility may be helpful to those considering what to do with their portfolios.  Refer to the chart of the S&P 500 as prepared by JP Morgan going back over 33 years and showing annual returns which were positive in 25 of those 33 years despite an average intra-year drop of 14.7%. Investors who have maintained their investment policy allocations, and rebalanced when appropriate, have prospered despite this volatility. We see the political dysfunction induced volatility as just one more time when discipline in portfolio management is the best prescribed medicine.

October 7, 2013

Authored by: T. Taylor Payne, CPA/PFS, CFP(r)

Direct Phone: 812-602-6301

Email: ttpayne@paynewealthpartners.com

The Payne Wealth Partners team has DEEP knowledge and is dedicated to using that knowledge to help make clients’ lives better.


The information in this material is only as current as the date indicated, and may be superseded by subsequent market events or for other reasons. While all information prepared in this document is believed to be accurate, any statements of opinion constitute only current opinions of Payne Wealth Partners, Inc., which are subject to change and which Payne Wealth Partners, Inc. does not undertake to update. Accordingly, you should not put undue reliance on these statements. The information does not attempt to examine all the facts and circumstances that may be relevant to an individual’s financial needs. Payne Wealth Partners, Inc. is not soliciting any action based on these statements.

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