๐๐ฉ๐๐๐ญ๐ ๐จ๐ง ๐ญ๐ก๐ ๐.๐. ๐๐จ๐ฏ๐๐ซ๐ง๐ฆ๐๐ง๐ญ ๐๐ก๐ฎ๐ญ๐๐จ๐ฐ๐ง
Dear copiers and followers,
The U.S. government is officially shut down. This means many services will stop starting today until the government resumes functioning. Economic losses will be incurred and GDP will be affected.
๐๐ก๐ฒ ๐๐ข๐ ๐ญ๐ก๐ ๐ ๐จ๐ฏ๐๐ซ๐ง๐ฆ๐๐ง๐ญ ๐ฌ๐ก๐ฎ๐ญ ๐๐จ๐ฐ๐ง?
The U.S. government needs to be funded, as it does not generate revenue on its own. To provide that funding, Congress must agree on a budget to finance government operations. If Congress fails to pass a budget on time, there is no money to pay employees or fund federal activities.
๐๐จ๐ฐ ๐๐จ๐๐ฌ ๐ญ๐ก๐ข๐ฌ ๐๐๐๐๐๐ญ ๐ญ๐ก๐ ๐ฌ๐ญ๐จ๐๐ค ๐ฆ๐๐ซ๐ค๐๐ญ?
Agencies like the Department of Labor and the Bureau of Labor Statistics (BLS) suspend operations. This is not critical as long as the shutdown is short (less than a month). However, if the shutdown extends beyond a month (a highly unlikely scenario), the stock market might experience amplified volatility due to the lack of inflation and jobs data. The lack of job and inflation data triggers uncertainty, as investors and even the Federal Reserve Bank in the U.S. depend on those data to adjust interest rates.
In a short shutdown, some short-term volatility is to be expected. This is however not the type of volatility that triggered worries. Since 1976, there have been 21 shutdowns, and none of them caused a major impact on the stock market.
Over the next few days, there will likely be a lot of news surrounding the shutdown. Higher levels of uncertainty may arise, and some investors who tend to panic will probably be panicking ๐.
As for me, I will not be selling or making any portfolio moves based on this event (yet). If some stocks become heavily discounted, I might even buy more. I see this event as more political than economic, and I believe it will pass while the stock market keeps rolling forward.
Best Regards,
Nabil Sifo
$SPX500$NSDQ100
I am a professional risk modeler and an Associate Member of the Chartered Institute for Securities & Investment (CISI), London. All posts reflect my personal opinions only and do not constitute, nor should they be interpreted as, financial advice or a recommendation to buy or sell any securities.
๐๐ข๐ฌ๐ค ๐๐๐ซ๐ง๐ข๐ง๐ ๐ฌ:
Copy Trading does not amount to investment advice | Your capital is at risk | Past performance is not indicative of future results.... Show More
That is actually great news i have been waiting long time now for the red time ๐ .This is good time to invest more . Thanks for your update.... Show More
I see it very similarly. There will certainly be a lot of nervousness and corresponding volatility beforehand, but that will quickly be forgotten once the shutdown is over. Best regards!... Show More
Excellent analysis. I completely agree that these events are often more political noise than real long-term economic impact. The key is to stay disciplined, avoid impulsive decisions, and stick to a diversified, high-conviction strategy.... Show More
I want to add more funds to your portfolio, is it better to wait for these developments or can i invest now as well?... Show More
1 reply
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Fri Nov 07 2025 12:50:17 GMT+0000 (Coordinated Universal Time)
