Politics Heat Up, Markets Stay Cool, & Equity Index Annuities

This week, the Money Wise team tackles a headline-dominated week that centered on Washington’s government shutdown, and the market’s complete lack of reaction to it. Despite the political drama, the Dow rose 511 points (+1.1%), the S&P 500 climbed 72 points (+1.1%), and the NASDAQ gained 296 points (+1.3%). Year-to-date, all three major indexes continue their steady climb, with the NASDAQ leading at +18%.

The guys note that even with economic data releases halted, trading volume stayed strong, with the S&P 500 showing buy-side activity above its daily average all week. They emphasize that this marks the 11th government shutdown since 1980, and history shows markets rarely care. In fact, investors seem to view the lack of news as a relief, “no news is good news.”

The conversation turns political as the crew discusses how the administration’s stance on spending and immigration has shaped the fiscal standoff. Yet, from an investment perspective, they stress that markets continue to take it in stride, ignoring media-driven panic. With the S&P 500 just shy of record highs and up 12% since November 2024, the hosts push back on the “bubble talk” dominating financial media, reminding listeners that the economy remains strong, backed by 3.8% GDP growth and consistent investor optimism.

Markets Stay Cool 

Even with political gridlock dominating the headlines, markets stayed cool, showing once again that investors tend to look past short-term noise. The guys point out that history has consistently shown resilience during government shutdowns, budget battles, and other moments of uncertainty. In fact, reviewing past performance reminds us that markets often continue their long-term upward trend despite temporary volatility. Understanding this history helps investors maintain perspective, avoid reactionary decisions, and stay focused on the fundamentals driving growth rather than fleeting headlines.

In the second hour, the Money Wise guys discuss Equity Index Annuities. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.