Even though the major stock indices around the globe fell on fears of a government, it is not something investors should fear. The S&P 500 lost 10 points (0.6%) while the NASDAQ only lost 0.3% or 10 points. There were a few sectors that held up well against the broad-based selling. The Regional Banks (IAT), Semis (SMH), and Utilities (XLU) were the best performing sectors.
The media and many politicians want you to fear a government shutdown. I on the other hand want you to take it with a grain of salt. Yes, it sucks as an American to have our government shut down. BUT, I am not about to get into politics in MarkETForce, there is not enough money out there to get me going on that topic.
Therefore, I will solely take the view of a investor. And from that viewpoint I believe a shutdown will create an attractive buying opportunity for investors in the game for the long haul. For each week the government is shut down it will shave off 0.15% from the annualized GDP. Granted that is something, but a shutdown of a week or two will not change the landscape for most publicly traded companies. Sure there are specific companies that may be affected, but as a whole any selling will be based on the shutdown and not the fundamentals of the specific company.
We issued a buy alert today for a new ETF that was added to the MarkETForce Portfolio and anticipate there will be more buys in the coming days/weeks depending on the length of a shutdown.
Subscribers and Clients should be ready as the market appears to be offering us another "Clearance Sale" on stocks and ETFs.