An Investor’s Guide To Government Shutdowns

Observant investors are often on the lookout for potential market disruptions. One recurring event causing concern is a U.S. government shutdown. In fact, the U.S. Congress has the nation on track for yet another one, which could be triggered on October 1^st, barring any last-minute deals.

A government shutdown occurs when the U.S. Congress fails to pass, or the President of the United States refuses to sign, legislation funding government operations and agencies. In such cases, the government ceases providing all but “essential” services. This can lead to the furlough of several hundreds of thousands of federal government employees; it can also affect various sectors depending on the length of the shutdown.