Well, it’s official.

The boys and girls masquerading as lawmakers in Washington D.C. have once again placed their political agendas over the good of the country. And as a result of the childish behavior displayed by both sides in this debate, the government began to shut down Tuesday.

Perhaps Standard & Poor’s summed up the situation best on Monday saying, “This sort of political brinkmanship is the dominant reason the [U.S.] rating is no longer ‘AAA.’”

While it is tempting to rant on about the absolutely ridiculous games the professional politicians in D.C. play these days, this space is reserved for commentary on the stock market. As such, Tuesday morning’s focus will be on the potential impact a government shutdown could have on the economy and, in turn, the stock market.

It’s Not The First Time

First off, it is important to recognize that this isn’t the first time that politics have shuttered the U.S. government. Although it has been nearly eighteen years since the last time the politicians turned out the lights in D.C., history shows the government has been shut down a total of seventeen times over the last forty years. Here’s how the market reacted…

Read the rest of the report…


David Moenning is the founder and chief investment strategist for StateoftheMarkets.com, a website dedicated to investor education and portfolio analysis. Mr. Moenning is also President of Heritage Capital Management, a privately owned, investment management firm. Founded in 1989, Heritage is focuses on risk management and an “own the best and ignore the rest” equity selection strategy.