Question: How has the market reacted during previous Government Shutdowns?
Answer: Not much.
Chart from ZeroHedge at...
Monday, the S&P finished down 0.6% to 1,682 (rounded) at the close.
MARKET INTERNALS (NYSE DATA)
The 10-day moving average of stocks advancing on the NYSE fell to 51% Friday from 53% at the close Friday. (A number above 50% for the 10-day average is generally good news for the market, but this number has been falling consistently for the last 8-sessions and that's not good.
MY INVESTED POSITION
I remain about 20% invested in stocks as of 5 March (S&P 500 -1540). The NTSM system sold at 1575 on 16 April. (This is just another reminder that I should follow the NTSM analysis and not act emotionally – I am under-performing my own system by about 2%!) I have no problems leaving 20% or 30% invested. If the market is cut in half (worst case) I’d only lose 10%-15% of my investments. It also hedges the bet if I am wrong since I will have some invested if the market goes up. No system is perfect.