Dear Friends,

As John Adams quipped, “I have come to a conclusion that one useless man is a shame, two is a law firm, and three or more is a congress.”

The shutdown of the Federal government has begun - Senate Republicans and Democrats continue to be unwilling to compromise, and have failed so far to reach accord on a number of simmering disagreements.

As Conan O’Brien quipped, “Our government may be shutting down in a few hours. So, folks, get ready for absolutely no noticeable difference.”

While disappointing to say the least, investors have historically tended to disregard government shutdowns, and many believe our current economic situation likely will have little shorter-term effects on the stock market, corporate earnings, and long-term economic growth (at least as judged by similar previous events).

HOWEVER, it is important to note that many experts believe the true takeaway behind the Federal government shutdown is its correlation to the likelihood of Congress failing to negotiate an extension of the U.S. debt ceiling in a timely manner sometime later this spring.

While the debt-ceiling "drop-dead" date is somewhat of a moving target, what is virtually certain is global economic havoc if Congress fails to lift it when needed, causing the Treasury to default on our $20.5 trillion of national debt.

To be clear, the possibility of this actually happening is a very low probability event, but serves to directly highlight that the greatest risk to the continued advance of the stock market may not be economic, but political.

Confused yet? Having fun yet? It certainly is a lot to digest...

Needless to say, the world is very complicated. We encourage you to call (916-405-9140) email ( or Tweet (@twrpointwealth) us with any questions or concerns you have. We are here for you, and look forward to connecting with, helping, and being a direct, independent, and no-strings-attached expert financial resource for each of you.


- Joseph and the Towerpoint Wealth team

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