This isn’t to say that you won’t see some volatility in the days and weeks ahead if the shutdown continues for a while. The financial markets do not like uncertainty, and while some of this uncertainty may already have been “factored in” during the past few weeks, as the possibility of a shutdown increased, we may still see some significant price gyrations.
Try not to overreact to these price swings, if they do occur. If you feel you must do something with regard to your investments, why not take this opportunity to look over your long-term strategy to make sure it’s still properly aligned with your goals, risk tolerance and time horizon? Over time, your personal situation can change in many ways, so it’s always a good idea to review your investment portfolio, and to make those changes that can help you continue making progress toward your objectives, such as a comfortable retirement.
Furthermore, if we do see some price declines, you may well be presented with the opportunity to buy quality investments at good prices, so stay alert for these possibilities.
Above all else, don’t let the headlines of today scare you away from investing for tomorrow. With patience, discipline and the ability to maintain a long-term perspective in spite of short-term events, you can develop good investment habits that will serve you well for a lifetime.
Brian Humphrey is a financial consultant and investment advisor.