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Stock Trading During a Government Shutdown
Political brinksmanship continues on Capitol Hill and a government shutdown appears eminent. Because volatile markets often promise the best profits we look at stock trading during a government shutdown. Let us look at both how both fundamental and technical analysis can help turn a profit in the coming days. The general consensus is that a temporary shutdown will hurt stocks but not very much. A longer term government shutdown might be a different matter. Failure to raise the government debt ceiling could cause measurable harm to the economy. The economic impact of shutting down the government comes to less than half a percent per month. That figure assumes that a month is the most extreme case before the boys on Capitol Hill grow up and act like leaders. If the debt ceiling is not raised government spending cuts will result in government spending cuts and something on the level of a four percent drop in the Gross Domestic Product. If the US government defaults on its debts all bets are off.