Legislation
There is a whole list of legislation that needs to be passed such as a bill raising the debt ceiling, spending bills to keep the government open, renewal of key programs that will expire and budget resolution. They have got to get a lot done in September. If this uncertainty continues, or if it doesn’t happen, I think we all agree that we will start seeing some more volatility in the market.
Similar Times
This time is sounding very similar to September of 2013 where we had the government shutdown at the end of September, the mid-October debt ceiling debate, the discussion regarding a new fed chair, the tapering talk, and dealing with Syria, that is similar to the current North Korea issues. The market pulled back 4% that September. They eventually got their act together and we did not default on our debt, leading to the market rally through the end of the year. However, it is important to keep in mind that this uncertainty definitely has an effect on the market.
Congress
When Congress gets to work this week they have a lot to look at. There are some topics that are always controversial, such as the discussions on debt ceiling and budget reconciliation. The House has 12 working days and the Senate has 16 working days until the end of September.
CFPB
The Consumer Financial Protection Bureau was created in order to try and help consumers. However, it has done anything but that. It has, in fact, made the whole process harder and more expensive. Now, in addition to the debt ceiling discussions, these issues have risen. From a market standpoint all these items have to be passed before they can even get to the tax reform discussion, which we think, day to day, is the most impactful item we are following.
Greg Powell, CIMA®
President and CEO
Wealth Consultant
Email Greg Powell here
Bobby Norman, CFP®, AIF®
Senior Vice President
Wealth Consultant
Email Bobby Norman here
Ashley Page, JD, MBA
Senior Vice President
Wealth Consultant
Email Ashley Page here
Trey Booth, CFA®, AIF®
Senior Vice President
Wealth Consultant
Email Trey Booth here
Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
Economic forecasts set forth in this presentation may not develop as predicted.
No strategy can ensure success or protect against a loss.
Stock investing involves risk including potential loss of principal.
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