Thijme Schriek @DrWily: "- 𝗧𝗵𝗲 𝗨𝗦 𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗦𝗵𝘂𝘁𝗱𝗼𝘄𝗻,..."

Netherlands

- 𝗧𝗵𝗲 𝗨𝗦 𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗦𝗵𝘂𝘁𝗱𝗼𝘄𝗻, 𝗡𝗼𝘄 𝗪𝗵𝗮𝘁? - The US government has once again shut down, which could impact the economy in various ways. But should we as investors be worried? Could this affect markets? Well, let's look into it! - 𝗛𝗼𝘄 𝗗𝗼𝗲𝘀 𝗧𝗵𝗶𝘀 𝗔𝗳𝗳𝗲𝗰𝘁 𝗧𝗵𝗲 𝗨𝗦? - Now, a government shutdown will be felt throughout the entire economy, as it accounts for 23% of the country's total GDP. Now it's difficult to predict how this will impact the economy and everyday life for Americans, given its significant size. But we can be certain of a couple of outcomes. First of all, Federal agencies will implement their contingency plans and send hundreds of thousands of government workers home to wait out a stalemate. As a result, many government functions will either come to a complete halt or slow down significantly; meanwhile, these employees won't earn a penny. The longer the shutdown takes, the bigger the impact. Secondly, economic data will be less accurate, arrive late, or won't be released at all. For example, job data from the Bureau of Labor Statistics is crucial information that the Federal Reserve uses to assess the health of the economy and determine whether it needs to increase or lower interest rates. Third, it could lead to a downgrade in the credit rating of the US. This has happened in the past and could lead to higher interest rates or other problems in the bond market. But what happens in the stock market when this happens? Do prices go down at all? Well... - 𝗢𝘃𝗲𝗿𝗮𝗹𝗹, 𝗜𝘁 𝗗𝗼𝗲𝘀𝗻'𝘁 𝗠𝗮𝘁𝘁𝗲𝗿 - Now, one thing that is always important for an investor is to stay calm, not panic, and look at the situation from all angles. Fortunately, the Carson Group, a financial advisory group, collected the data for us. Now the picture is clear: overall, the market doesn't care about government shutdowns, and almost always, markets will continue to rise. Quote: "Below is a table we put together that shows how stocks are up a little bit during the previous 22 shutdowns, but a year later have been higher 19 times and up an average of nearly 13% a year later." Only three times in total did we see negative returns 12 months later, so, overall, it doesn't matter too much. Now, I will admit that as time goes on and total government debt rises, certain risks arise. For example, holding large amounts of American bonds is foolish at this point; the yields will most likely be disappointing, and there is a high chance of getting diluted as they print more. But staying invested in the broader market is undoubtedly your best option at this point. Sources: www.bls.gov/schedule/news_release/empsit.html finance.yahoo.com/news/a-government-shutdown-begins-after-talks-break-down-040124607.html finance.yahoo.com/news/private-economic-data-is-set-to-take-on-an-even-bigger-role-100049442.html www.carsongroup.com/insights/blog/lets-talk-about-a-government-shutdown/ If you liked this short post, FOLLOW my profile for more; if you agree with my investing philosophy, COPY my portfolio to join the ride! My Performance speaks for itself! ✅ +40% in 2024! ✅ Well-diversified portfolio! ✅ Long-term mindset! ✅ Low-risk score of only 4! Be sure to copy my portfolio! $SPX500 $NSDQ100 $GOLD $BTC $TLT (iShares 20+ Year Treasury Bond ETF )

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