A partial government shutdown is causing some concerns in the stock markets, but not enough to require any dramatic actions by investors. There is actually speculation that this stalemate will cause both sides to make a comprehensive compromise to include raising the debt ceiling, which has an October 17th “day of reckoning” date. The hope is that the House, Senate, and President will be forced to address all the issues with a “grand bargain” that will allow all sides to walk away feeling like winners. Right now I would not bet on such a rosy outcome. Investors should remain cautious and make very selective stock buys if prices become more appealing.
Meanwhile, our Fun Stocks Index continues to set records due to the expectation of better profits from the companies that comprise our Index. Its performance since January 1, 2009 (3.8 years) is now up to 558.14% as opposed to 87.4% for the S&P 500. The year-to-date performance of our Fun Stocks Index has also been remarkable as illustrated by this chart:
Performance of Indexes (Jan. 1, 2013 to Sept 30, 2013)
- Fun Stocks Index……………….up 53.74%
- S&P 500 (SPY ETF) Index……up 17.98%
- Dow Jones (DIA ETF) Index…up 15.64%
- NASDAQ (QQQ ETF) Index…up 21.11%
You can click here to learn how to build your own Fun Stocks Index.
Have a great week!
Remember that past performance of any investment is not an indicator or guarantee of future results.