The Actual Danger Isn't the Government Shutdown
Contributed Opinion

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The U.S. federal government has ceased operations. Once again.

Get ready for countless headlines about staff suspensions. Images of shuttered entrances to federal recreation areas. And commentators discussing economic consequences.

It will appear chaotic. It will sound critical.

My reaction?

Sigh.

Regarding government closures, we've "witnessed this scenario" on numerous occasions.

This is simply politicians behaving predictably. It's all performance. No different than the latest theatrical production (just with significantly inferior acting).

Here's what matters. . . 

Markets typically CLIMB when government offices shut!

This isn't the first instance Washington has "exhausted its funds." Since 1980, federal operations have halted 15 times.

Each occurrence, financial media portrayed it as an impending disaster.

Then several days elapsed. Lawmakers reached an agreement. And everything resumed normally. So much for emergency.

In over 70% of instances, equities increased during the closure. Twelve months later, the S&P 500 had gained an average of 15.5%.

So why do shutdowns seem so threatening? Because they capture attention.

One of Peter Lynch's most valuable insights applies perfectly here: "investors lose more by preparing for corrections than in the corrections themselves." The genuine threat isn't the closure; it's divesting from excellent innovative companies because media coverage alarmed you.

My fellow investors, the appropriate strategy is to disregard the government closure and concentrate on exceptionally disruptive businesses.

The enterprises generating authentic wealth don't succeed or fail because legislation is stalled in Congress. They triumph by creating superior products that customers consider essential.

Innovative companies aren't concerned with Washington's political games.

At RiskHedge, our advantage lies in investing in businesses riding transformative megatrends.

Organizations that grow regardless of D.C.'s temperamental shifts.

Nvidia Corp. (NVDA:NASDAQ) didn't become a trillion-dollar enterprise because Congress approved an expenditure bill.

Amazon.com Inc. (AMZN:NASDAQ) didn't construct the world's largest marketplace because politicians compromised on finances.

Tesla Inc. (TSLA:NASDAQ) didn't advance electric vehicles because legislators found "common ground."

Exceptional disruptors prosper because they develop better products, attract customers, and transform entire industries.

Their stocks appreciate because they expand revenues and earnings quarter after quarter. Not because Washington functions efficiently. Outstanding disruptors largely remain unaffected by federal mood swings.

Market concerns are perpetually present.

The current situation merely represents the newest entry in an extensive catalog of predicted market catastrophes that never materialized.

This inventory includes: Middle Eastern conflict . . . elevated petroleum prices . . . plummeting petroleum prices . . . ascending interest rates . . . inflation . . . America's credit reduction . . . tariffs . . . and considerably more.

Nevertheless, the Nasdaq has delivered investors 470% returns over the past decade and established a fresh peak just yesterday.

Media outlets like CNBC and Bloomberg fixate on alarming narratives. That's their revenue model.

Please don't allow their fixation to become yours. Because it's harmful to your prosperity and may cost you millions in investment profits throughout your lifetime.

I'm not suggesting financial journalists intend to harm you. But most people forget CNBC and similar outlets are entertainers, not investment experts.

If you require guidance presently, it's not in Washington . . .

It's in the most extensive infrastructure development of our era.

AI facilities, enormous data centers, are being financed, authorized, constructed, and powered at an astonishing rate.

Major technology companies' AI expenditures are surging and positioned to remain elevated as AI workloads expand.

This year alone, major tech will invest $350 billion+ building new AI data centers. In a single year, AI infrastructure expenditure has grown to match the entire Apollo program or Interstate Highway System, when adjusted to current dollars.

These "AI factories" are absorbing chips, servers, electricity, property . . . and substantial capital.

Unsurprisingly, most top-performing stocks this year relate to AI.

That's where investor wealth will form. Not through Democratic and Republican agreement.

Previously, I worked in New Zealand.

Opposite me sat a colleague with a small note affixed to his monitor. It stated:

"This too shall pass."

Closures pass. Debt-ceiling conflicts pass. Filibusters, partisan standoffs, political theater, they all pass.

What persists are exceptional companies compounding cash flows by tackling enormous challenges with superior, faster, more affordable solutions. That's the RiskHedge approach. That's how substantial returns are generated.

Remember, the actual danger isn't the shutdown. It's permitting headlines to prompt you into selling outstanding businesses.

That's our advantage. Ignoring distractions. And concentrating on exceptional enterprises profiting from transformative megatrends.

Legitimate reasons for caution exist. Government employees taking brief work absences isn't among them.

If you liked this, consider joining my Jolt investing letter, where I write about the world’s biggest disruptions—and how to capitalize off them—every Monday and Friday. You can join here for free.