00:00 Speaker A
Kenny, I'm coming to you right out of the block. Why is this market ignoring this government shutdown?
00:04 Kenny
I don't think the government shutdown's a big thing at all. The market always tends to ignore the a shutdown. It may have an initial uh negative reaction, but then it kind of pushes it aside because the the shutdown is not going to price stocks in the long term. I think investors once again look through it and they look at what the data is, whether it's economic data, individual company data, you know, kind of regulatory policy data. They look right through it. So I I was for one to say, I don't think it's going to last very long, nor do I think investors are going to pay much attention to it at all.
00:30 Speaker A
Uh Kenny, if we're back here 10 days from now, having the same conversation, where do you think the market is? When does it start to pay attention to this stuff?
00:40 Kenny
So, listen, the last time the last time we had this, it was in 2018 or 2019, the shutdown went on for 35 days. The S&P sold off about 15% because after after a while, whether it was a week or a week and a half, the market started to maybe get a little bit concerned that, you know, this is going to be a much bigger issue. It was going to start to impact the economy, it was going to start to impact, you know, people across the spectrum. and so it did get nervous. But the minute, the minute they came to a deal 35 days later, the S&P rallied right back. I went right up through all the losses, took back all the losses, and then once again started to focus on the data and on the economy. I think that will be the case. Now, if we if this drags out, you know, a week, two, I don't think a week's going to do anything. two weeks, you might start to see some people get a little bit anxious and I wouldn't be surprised if if if they do. Um, but again, so after after it's over, the market typically then focuses right back on the economy. And if the economy is as strong as we think it is, uh then it should bounce right back.
