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The New Year has started with a lot of financial uncertainty, and the one thing people shouldn’t do is simply sit back and do nothing. That is, unless that’s what a competent financial advisor is counseling you to do.

There are a lot of factors leading to this recent financial uncertainty, which is largely related to several political and government actions, First, the U.S. government being shut down for the longest length of time in history is not assuring investors, particularly investors with interests in any company contracting with the U.S. Government let alone federal workers and contractors who are sitting idly by. Even worse, at the time this is written is that the shutdown has started having the “essential” federal employees who have been working without pay for weeks to start calling in sick, leaving even TSA and other security functions falling behind. With more than a million workers not being paid, their personal spending is also stopping. If it goes too much longer and people can’t pay their rent or mortgage, we’ll see a creeping impact on the housing market as well with evictions and mortgage foreclosures.

Another big factor hitting the economy are the various trade tariff battles going on. Many U.S. farmers and other sectors are cut off from foreign markets, and therefore they are losing a lot of business. Coupled with the government shutdown, farmers in particular are not getting the relief they were promised because the money is just not in the budget and checks cannot be printed and mailed out.

While people may argue on one side that this is terrible for the economy, on another side they are arguing this may be good for long term growth. However, the recent record drops in the market followed by a huge gain does not inspire short term confidence. The solution to this volatility will definitely vary depending on your specific investments, how they are positioned, and what your goals are. Some of my senior clients have already told me they are getting out of the stock market until things get back to normal, but some of my younger clients have been advised to stay put. But the one thing people shouldn’t do is simply stay in the market without discussing things with their financial professional.

If you don’t already have a financial professional you are working with and would like to discuss things, then please give us a call at The Care Assistance Center, LLC at (919) 518-8237 to set up a time for a free financial health check.