As the week progresses, the financial markets could be more
influenced by politics in Washington. The debt ceiling and
government funding are likely to be issues as the new fiscal year
approaches on October 1
It appears that House Republicans are trying to score some
political points related to the unpopularity of ObamaCare and grass
roots sentiment favoring less government spending and
debt. At the same time, it looks like the Democrats are
trying to leverage the potential positives of a government shutdown
being blamed on the Republicans. The government shut
down in 1995 was a major political plus for the Democrats.
As usual, both parties in Congress tend to wait to the last minute
to craft legislation and the parties remain extremely
divided. Media spin and political positioning seem more
important than policy which is positive for economic growth and job
1) What do you think is the chance for a government shutdown?
a) Less than 25%
b) Between 25% and 50%
c) Between 51% and 75%
d) More than 75%
2) How much will the events in Washington impact this week's price
action in the S&P 500 in terms of absolute price change -
positive or negatively [think resolution being a positive and
crisis being a negative]?
a) Little - less than 1% impact
b) Moderately - 1% to 3% impact
c) Significant - greater than 3%
Let me know your thoughts below!
SPDR-DJ IND AVG (DIA): ETF Research Reports
ISHARS-7-10YTB (IEF): ETF Research Reports
SPDR-SP 500 TR (SPY): ETF Research Reports
ISHARS-20+YTB (TLT): ETF Research Reports
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