Unless Washington can agree on a deal for funding the government by the December 8 deadline, we are looking at a likely government shutdown. But remember, although the Republicans control both chambers of the U.S. Congress, they will likely rely on some Democratic votes to pass the funding needed.
So what would a potential government shutdown mean for equities? Per Ryan Detrick, Senior Market Strategist, “Although a government shutdown sounds scary, the reality is it has been a non-event historically for equities. Going back nearly 40 years, the median return during shutdowns has been exactly flat. Not to mention the last shutdown in 2013 saw an impressive 3.1% gain in the S&P 500.”
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