00:00 Speaker A
shaking off the risk for the government shutdown for now. The S&P 500 touching a new record.
00:06 Speaker A
Joining me now is Keith Gangle, Radiant Investments, senior portfolio manager, and Blerina Uruci, T-Ro Price, chief US economist. Welcome to you both.
00:15 Speaker A
Keith, I'll start with you in this government shutdown and what do you make of this market reaction or or the lack of reaction, Keith. There's green all over my screen. I got the S&P rising to a a new record here. What do you make of that, Keith?
00:30 Keith Gangle
Yeah, I think the market's ignoring it. I mean they're looking at the last 22 shutdown since 1976. on average they've been averaging eight days, so relatively short. On top of that, usually when employees go back to work from the government, they get back pay. So if it's short, you get back pay, a little disruption. I think that's what the market's telling you. I think it's going to be short and there's no employee firing. Again, that's on the table supposedly by Trump recently, but I think the market's telling you that's not going to happen and it's not going to be a longer shutdown as well.
00:52 Speaker A
Keith, when you when you saw as an investor that it looked likely a government shutdown was on the way and now it's here, you know, just most basically Keith, did it cause you, did it did it motivate you in any way to change how and where you were going to put money to work?
01:07 Keith Gangle
No, not at all. I mean what we're looking at is the overall performance of the overall market's been very strong in the last two years. This year the S&P's up 14%. So we're more concerned about what's happening now and kind of the fundamentals. Earnings have been fantastic in Q2. Q3 is right around the corner. I think that's going to be the next big pivot point deciding if we need to shift our portfolios. But right now we think we ought to participate. I think the market will grind higher in the year end, so you don't want to get too defensive. But on the other hand, you don't want to get way over your skis and a lot of these names that have had a big run, you may want to dial us back a little bit.
