Government shutdowns not covered by the media

Government shutdowns not covered by the media

The average duration of the shutdown is only about eight days.

The S&P 500 closed higher in 86% of cases a year after the shutdown.

The S&P 500 posted an average increase of +13% a year after the end of the shutdown.

During the 35-day shutdown in 2018, the S&P 500 rallied +11%.

When the government is shut down, the U.S. delays costs by about $400 million a day.

When government data releases are suspended, the Fed typically moves more dovishly.

Historically, markets virtually welcome shutdowns. ✔ U.S. government shutdown after 7 years…

U.S. Government Goes Shutdown After About 7 Years Due to Budget Stalling Between President Trump and Democrats

• The shutdown began as Congress crossed the midnight budget deadline, and the key issue is whether to include health insurance subsidy policies in the interim budget
• Shutdowns have disrupted all government functions except essential work, affecting hundreds of thousands of jobs, with about 750,000 federal officials on temporary unpaid leave
• If the shutdown lasts for three weeks, unemployment could jump as much as 4.7% from 4.3% in August, and the release of key economic data, including employment reports, will also be delayed; there have been cases of permanent economic output losses during past shutdowns
• President Trump has indicated that he could use the shutdown as an opportunity to fire large numbers of federal officials beyond temporary unpaid leave, raising concerns that it could worsen the economic shock