With the threat of Govt Shutdown looming, is it wise to take money out of stock marke

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#1
When I told my wife that teapartiers are going to shut the the government down over obamacare, she told me to take money out of stocks and mutual funds. Is this a valid concern or should we wait and see? Theres also the threat of defaulting on our debts by not raising the debt ceiling. I am worried. Advice.
 

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
#5
Shutting down the government shouldn't have a major effect on the stock market, should it? I can't imagine it would, but I'm not a financial planner.
 
#6
When I told my wife that teapartiers are going to shut the the government down over obamacare, she told me to take money out of stocks and mutual funds. Is this a valid concern or should we wait and see? Theres also the threat of defaulting on our debts by not raising the debt ceiling. I am worried. Advice.
What are her credentials in the financial industry? If none, seek out a financial advisor. Don't make a decision you may come to regret off fear.
 

Divvy

Canadians burned my passport
#9
Didn't your government go through this crap last year? Is this a yearly occurrence now? Get your shit together!
 
#14
Shutting down the government shouldn't have a major effect on the stock market, should it? I can't imagine it would, but I'm not a financial planner.
Previous times there were budget or debt ceiling battles, the stock market tanked in fear of what other organizations (Moody, S&P, etc.) would do, especially re: the credit rating of the USA. When nothing happened and business went on as normal, the market did its thing and bounced back over time.

So, yes and no. Short term there will be a drop and people who took their money out will pat themselves on the back for saving their money. Long term the market keeps going up. It's sort of what it does.
 
#15
They are going to come to a deal in the last day or so like they always do.

Also this really doesnt even matter as far as money goes unless you are <10 years away from retiring.
 
#16
My checking account? Come on.
If it reached a point where the government could no longer function I can't imagine how the bank will be a safe place either.

It depends on your time frame. Unless you're a short term trader, I don't know how you'd really benefit from a quick in and out at this point as you're likely in at a far lower buy point and making some nice long term dividend payments and re-investments. Any potential fear is likely already priced in, or at worst being priced in as we speak.


Also, the government can just print more money so I really wouldn't be worried about running out.
 
#17
Also this really doesnt even matter as far as money goes unless you are <10 years away from retiring.
My view, yeah. It's going to make a big shock in short term, but seems like a hassle to go through unless you're needing all the money now. May be short it? But everyone is going to do that.
 

marrec

Loves ketchup on hot dogs and Pringles
#22
When I told my wife that teapartiers are going to shut the the government down over obamacare, she told me to take money out of stocks and mutual funds. Is this a valid concern or should we wait and see? Theres also the threat of defaulting on our debts by not raising the debt ceiling. I am worried. Advice.
Are you talking about a long term investment plan?
 
#26
Are you talking about a long term investment plan?
Well my long term plan is 401k (roth and regular). So theres nothing I can do when the govt shuts down, the sky opens and four horsemen of apocalypse show up. But other than IRA I have bunch of monies in mutual funds (not a whole lot) which I am worried about. I guess that classifies as short term. Sorry I am still new to this investing business.
 

marrec

Loves ketchup on hot dogs and Pringles
#29
Well my long term plan is 401k (roth and regular). So theres nothing I can do when the govt shuts down, the sky opens and four horsemen of apocalypse show up. But other than IRA I have bunch of monies in mutual funds (not a whole lot) which I am worried about. I guess that classifies as short term. Sorry I am still new to this investing business.
Unless you plan on taking on a bunch of risks, just leave them where they are. Stock market will probably take a hit from a potential shutdown (The shutdown won't happen, BTW) but in the end the market will go back up above where it is now and it'll be like the dip never happened. The minuscule amount of money you'd make by pulling out your stocks at JUST the right time and getting back in at JUST the right time are not worth the risk of actually loosing a bit of money by fucking it up.

Ride the wave my friend, and if it gets low enough, buy in on some you've been wanting for awhile.
 

TheOMan

Tagged as I see fit
#30
1. Sell all stocks
2. Wait for market to tank
3. Buy back in at sale prices in October/November
4. Profit when it bounces back in March

PS. I am not a financial planner. You should probably talk to one.
 
#32
It won't happen. The leadership remembers 1996. Boehner and his wing will vote with the Dems before letting that happen.
The "leadership" (and I use that term extremely loosely) remembers 1996. The problem is the people causing 99% of the trouble aren't the "leadership" and don't care what they have to say as long as they get to slight the "black atheist muslim communist socialist traitor" in the White House.
 

marrec

Loves ketchup on hot dogs and Pringles
#33
The "leadership" (and I use that term extremely loosely) remembers 1996. The problem is the people causing 99% of the trouble aren't the "leadership" and don't care what they have to say as long as they get to slight the "black atheist muslim communist socialist traitor" in the White House.
The House has enough to pass whatever bill the Senate sends back their way, everything will be fine.
 
#34
The effects of any shutdown will be relatively short term. My own approach to investing is to keep a well balanced, diversified portfolio and to tune out noise like this. If you are talking about funds you would otherwise not move, I wouldn't move them. Personally I'm ignoring stuff like this and just adhering to my investment plan, which has a very long term objective. Over time that's proven to be effective, even through the crash of 2008.

If you're more of a day trader and trying to time the market, well good luck.
 

marrec

Loves ketchup on hot dogs and Pringles
#36
The effects of any shutdown will be relatively short term. My own approach to investing is to keep a well balanced, diversified portfolio and to tune out noise like this. If you are talking about funds you would otherwise not move, I wouldn't move them. Personally I'm ignoring stuff like this and just adhering to my investment plan, which has a very long term objective. Over time that's proven to be effective, even through the crash of 2008.

If you're more of a day trader and trying to time the market, well good luck.
Smart and good looking people agree with this advice.

I took a poll.
 
#38
Tough decision. I've decided to stay with my portfolio, because I've already taken some money out of it during this year and now have enough to reinvest into the market, so there isn't much room for more actions. And who knows how much it will tank this time, I'm not even sure if I could get the opportunity to invest the money.
 
#39
When I told my wife that teapartiers are going to shut the the government down over obamacare, she told me to take money out of stocks and mutual funds. Is this a valid concern or should we wait and see? Theres also the threat of defaulting on our debts by not raising the debt ceiling. I am worried. Advice.
not a damn thing will happen
 
#41
If the market tank, start buying. I did that with MCD in 2009 and I'm close to double my money as of today. The saying is buy when fear is in the market, sell when euphoria sets in.

With that said I'm waiting on how the markets will react if there is a government shutdown. I'm close to selling some of my positions because I think the stock market confidence is too high with the recent record high, and it smells like 2008 again.
 
#43
How much of a fee do you have to pay to sell the bonds? Will you get a capital gains tax bill if you cash out?
Any gain you might make in selling and then buying back mutual funds may be wiped out by the fees and taxes.
You could sell your index and stock mutual funds and pick up shares in funds that specialize in cash, metals, short term corporate bonds,etc.
 
#46
Well my long term plan is 401k (roth and regular). So theres nothing I can do when the govt shuts down, the sky opens and four horsemen of apocalypse show up. But other than IRA I have bunch of monies in mutual funds (not a whole lot) which I am worried about. I guess that classifies as short term. Sorry I am still new to this investing business.
The time frame question is more about what the money is for. 401k is retirement money, which is presumably a very long time frame. Don't worry about these short term events; the effects won't even be noticeable in several decades when you cash out.

The mutual funds could be short term or could be long term. It depends on what you plan to do with that money. Is it a kid's college fund? That's probably longer term. Is it for buying a house or a car? That's much shorter term. That's really what people are getting at--the longer from now you're planning to cash out, the less likely it is that a market dip will have any effect on you.
 
#48
As said over and over above, if it's long term never change your stocks due to speculation, panic or speculation of panic. Since you have mutual funds, that's just my guess as to your situation.

But if you're playing the stock market short term then JESUS, you probably already enough of a daredevil to do something impulsive without asking for advice.
 
#49
Unless you're cashing out in a year or three, don't pay any attention to the market.

And if you're cashing out in a year or three, your money should already be in boring-ass shit that doesn't budge.
 
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