With the budget deadline approaching, there is yet to be an agreement in place that will stop the US Government from shutting down. On Friday, the political grandstanding began, with the house passing a budget which incorporates the defunding of Obamacare. The Senate proceeded by saying the bill was dead on arrival, and in response, the market took a nose dive. This playbook has been written before, there is a probability the US Government could shut down, but history suggests otherwise. The wise expectation would be, that after the political jawboning, an action by both houses will temporarily resolve the budget issues. This may cause some volatility ahead as markets trade on headline news. Cooler heads usually prevail and any market dips will probably be met with equity investors buying.
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