• Tel: (646) 452-6700
  • US Toll-Free: (800) 829-4337
  • Fax: (212) 599-1916

We take great pride in our firm's intellectual capital.

Sharing current views and opinions showcases the thought leadership we bring to our clients.

Current Views

October 1, 2013: The Federal Government Shutdown

Thoughts from our Domestic Equity Team

Today the Federal government has shuttered due to the inability of Congress to agree on a spending bill. By itself, we do not view this as being a significant issue. In fact, there have been 17 government shutdowns since 1976, and usually they were short and had muted market impact. The most notable was the three week shutdown in 1995, which provided a slight drag on GDP growth during that quarter but in general its effects were only temporary. The current shutdown has the potential to be more costly than historical precedent both because it has the potential to last for weeks and because it informs the coming debt ceiling debate which is likely to have a greater market impact. Overall though we believe that the nation’s political leadership will find a way in the coming weeks to resolve their differences on both issues, consistent with our experience in August 2011 and January 2013. Any market decline in advance of the debt ceiling impasse may well be limited since we think that investors have become accustomed to political brinksmanship. Indeed, U.S. equities are advancing even on the first day of the shutdown. The market has been strong overall this year, and we believe it will resume its upward bias following a resolution of the current debate in Washington, driven by the same factors that have supported it thus far: (1) slow and steady U.S. economic growth; (2) accommodative monetary policy from all the major central banks; and (3) encouraging signs of improvement in the major international economies including Europe, China and Japan.

Submitted by: Jason Benowitz, CFA

This information is intended solely to report on investment strategies and opportunities identified by Roosevelt. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. References to specific securities and their issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. Please contact us at 646-452-6700 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions, or if you would like to request a copy of our Code of Ethics. Our current disclosure statement is set forth on our Form ADV Part II, available for your review upon request, and on our website, www.rooseveltinvestments.com.

« Click here to go to the previous page

The Roosevelt Investment Group, Inc. is an independent investment management firm that is not affiliated with any parent organization. The Roosevelt Investment Group, Inc. manages domestic equity, international equity, domestic fixed income, global fixed income, and balanced assets for primarily U.S. clients. The Roosevelt Investment Group, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission and notice filed in all 50 states.

Please remember that in order to invest you must first read and understand the Form ADV Part 2A and our Privacy Policy.

Copyright© 2018. All rights reserved.