⚡️ Gov SHUTDOWN?! Market will tank?! What to do in this case? ⚠️⚡️Some shutdown insights with chart:
Chart shows longest shutdown: 12/22/18 - 1/25/19
The fear factor has always been PRE-shutdown. Not DURING or POST-shutdown.
⚡️ That means what?
If we shutdown, we may dip say 2-3%.
But what happens during shutdown?
You'd be surprised market actually RECOVERS during shutdown. BY A LOT.
During the shutdown in 2018-2019, the market recovered the ENTIRE DIP, whole +15%.
That's the same thing that happened in 2013. The market rose 3% during shutdown.
⚡️ So is shutdown really bad for markets?
No. Only shutdown fears really cause a dramatic effect BEFORE it happens.
Remember the psychology of "priced in". Once a shutdown happens and market reacts for a day or 2, it's priced in.
⚡️ But why?
After the shutdown happens, anything is good news.
If they announce a deal, that's good news.
If they vote, that's good news.
Thus, market does well during shutdowns.
Good luck. 🙂
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