If the Republicans and Democrats do not come to an agreement to raise the Debt Ceiling, the US government may shutdown once again.
In the worst case scenario (which I think is a low probability), the US government defaults on its debt, ratings get downgraded (which happened in 2011) and interest rates soar. This would be catastrophic for the US economy.
However, in most cases, this usually gets resolved at the last minute. This table shows how the S&P 500 reacted during previous government shutdowns.
www.piranhaprofits.com
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
8
Report
Login to post
No comments yet