Investments: Government Shutdown
As of last Tuesday at midnight, the U.S. government entered its first shutdown since December 2018. During a shutdown, all ‘nonessential’ federal employees are furloughed without pay until funding is restored, while ‘essential workers’ such as military personnel, TSA, and border patrol continue working but often do not receive paychecks until the government reopens.
Government shutdowns are not rare — there have been 11 since 1980, including the current one. Between 1980 and 1995, shutdowns averaged just over two days. By contrast, the last four shutdowns have been much longer, averaging more than 18 days, with the longest stretching to 35 days in 2018–2019.
Each week a shutdown persists, billions of dollars are lost in economic activity. If the current shutdown follows recent trends and lasts multiple weeks, markets may experience heightened volatility, and more importantly, short-term GDP growth could slow significantly.
Planning: The Power of Compounding
When it comes to building wealth, two factors matter far more than picking the perfect stock: time and consistency.
Starting early, contributing regularly, and staying invested over the long haul are the simplest ways to grow without stressing about daily market swings.
For example, if you invested $10,000 today and added $500 each month for 40 years at a conservative 6% annual return, you’d contribute $250,000 but end up with more than $1 million.
The lesson is simple: don’t wait—the best time to start investing was yesterday, and the next best time is today.
