What will the market do if government shuts down?

[Kirk W]

The Economic And Market Impacts Of A Government Shutdown            Forbes

While some political rhetoric has stated that a shutdown risks sending the country into an economic downturn, history does not support that conclusion. In the only two quarters with a decline in GDP accompanying a shutdown, the U.S. economy had already entered into a recession in the previous quarter. JPMorgan estimates that each week of government shutdown reduces GDP growth by 0.1 percentage point. Because federal employees receive retroactive salaries after the shutdown ends, any GDP growth lost is typically recouped.

Here's How a Government Shutdown Would Hurt The Economy     Investopedia

Much like past shutdowns like the 16-day closure in 2013, some federal offices would close, halting some services, while others, including Social Security and Medicare payments, and the military, would continue to function.

“The direct effects of both the 2013 and 2018-19 shutdowns on economic growth were relatively small and short-lived,” Michael Pugliese and Sarah House, economists at Wells Fargo Securities, wrote in an analysis.

How stocks may react to a potential government shutdown     AMERIPRISE FINANCIAL

Labor conditions, inflation, corporate profits and overall consumer/business demand are likely to play the most significant roles in shaping how stocks trade heading into year-end. However, there are two critical developments – if left to metastasize – that could have an outsized impact on the direction of asset prices: The current United Auto Workers (UAW) strike and a potential U.S. government shutdown.

[GlennWest]

They have to get the national dept down. They can't agree how. But this is a political discussion which is not allowed

[Kirk W]

The subject is the stock & bond markets, as well as CD's and other investments. Anything special that we should be doing, jist om case?

Edited September 25, 2023 by Kirk W

[Chalkie]

13 hours ago, Kirk W said:

The subject is the stock & bond markets, as well as CD's and other investments. Anything special that we should be doing, jist om case?

Yes, I am saying a little prayer that my financial advisor is on top of things and know what he is doing. 🙂

[Randyretired]

I usually invest for the long term and almost never make changes for short term anomalies. The only time I am concerned about daily market prices is when I am selling.  Then I try to start watching the market 6 months to one year in advance to try and sell at a better time.  Earlier this year I sold some index shares but I would like to sell a little more.  The market isn't cooperating lately so I may need to wait for awhile or try to figure if tax wise I can wait into the new year.  In any case I am not expecting a shut down to last  that long or affect prices long term. JMO

[2gypsies]

3 hours ago, Randyretired said:

I usually invest for the long term and almost never make changes for short term anomalies. The only time I am concerned about daily market prices is when I am selling.  Then I try to start watching the market 6 months to one year in advance to try and sell at a better time. 

Wise investing!  We do the same.  Panicking never turns out good.