Commentary

What to make of a potential government shutdown

Even with a historic decline in bullishness this time, past market events suggest staying the course.

Key Takeaways

More near-term market volatility may be possible for the U.S. stock market if Congress fails to pass a stopgap funding agreement on or before March 14 to avoid a government shutdown.
Shutdowns have been short-lived in the past, but the latest Congressional budget impasse is coming amid the fastest shift away from bullish sentiment for the stock market since the Gulf War in 1990.
Since 1987, similarly rapid declines in market bullishness resulted in an average gain of 20% over the next 12 months.

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What to make of a potential government shutdown

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