Niccolò De Vicari
Today, the United States officially entered a government shutdown. This means many federal activities have been temporarily halted because Congress failed to pass the budget in time. The deadlock stems from political disagreements, especially around funding for public programs. From a market perspective, shutdowns create uncertainty. Investors tend to react negatively to political instability, so we can expect increased volatility across major U.S. indices. Sectors tied to government contracts like defense and infrastructure are particularly exposed. However, it’s important to note that while investor sentiment may dip, the fundamentals of strong companies remain unchanged. Personally, I see these moments as opportunities. If a solid company gets penalized simply due to broader market fear, it might become undervalued. For long-term investors, this is where value can be capture buying quality assets at a discount while others panic. Plus I exposed myself to $VXX (iPath Series B S&P 500 VIX Short-Term FuturesTM ETN) to help in situations like this.
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VXX
iPath Series B S&P 500 VIX Short-Term FuturesTM ETN
34.47
-0.65 (-1.85%)
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