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Shutdown Is a Big Risk Mainly for the Economy

News

The Shutdown Is a Big Risk for the Economy, but Maybe Not for Stocks

Aaron Levitt Jan 24, 2019


The battle for the border wall has reached new levels of contention. As Democrats and President Trump battle over funding border security and construction of the wall, the Federal Government is at a standstill. At the time of writing, the shutdown has entered its 27th day. This now makes it the longest government shutdown on record. And with President Trump vowing to keep the government closed for months or even years until the wall is funded, Americans could be in for a long fight.

But what about investors and the market?

The strain of the shutdown could impact the economy on several fronts. The question is whether that will spill over into the market and hurt equities. Looking at history, the answer may be no – at least for now.

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