401k Analysis during a Government Shutdown 10/5/13

With the Government shutdown, the markets gave been slowly gyrating downwards. It is behaving in a manner where it is reluctant to go down, and is waiting for an opportunity to surge back up; but that could be my overactive imagination. All that is evident is that the markets have now shown a down signal on the Dow Jones 30 and one of my systems has also shown down on the S&P500 (SPY). My very slow systems still has SPY pointing up; but this is a time for caution. The politicians in Washington are taking us to the brink. They cannot figure out how to reduce the deficit and one party seems determined to pull down achievements of the other. I think both parties are acting childish enough to make us default. This may cause serious volatility. It may affect bond funds as well as the dollar and I think we will need to stay nimble. For myself, I am going to continue to follow the technicals and lighten up.

My previous employer’s 401K points towards the momentum being with Artisan Mid-Cap Val Inst, Vanguard Explorer Admiral and Fidelity Growth Co.

My current employer’s fund choices points toward Royce Opportunity, NB MDCP Growth Trust, WFA SPL Midcap Value, and Fidelity Large Cap. I stay away from Royce only because it has high redemption fees if you get out early; but it is worth holding if you can stay in it for several months.