Commentary

What to make of a potential government shutdown

Even with a historic decline in bullishness this time, past market events suggest staying the course.

Key Takeaways

More near-term market volatility may be possible for the U.S. stock market if Congress fails to pass a stopgap funding agreement on or before March 14 to avoid a government shutdown.
Shutdowns have been short-lived in the past, but the latest Congressional budget impasse is coming amid the fastest shift away from bullish sentiment for the stock market since the Gulf War in 1990.
Since 1987, similarly rapid declines in market bullishness resulted in an average gain of 20% over the next 12 months.

Get the full white paper

What to make of a potential government shutdown

Next steps to consider

Asset Allocation Research Team (AART)

Access economic, fundamental, and quantitative analysis from our Asset Allocation Research Team.

Learn more

Investment & Retirement Products

Meet the unique financial needs of your clients with our diverse investment and retirement offerings.

Learn more

Money Market Funds Resource Center

Browse through powerful insights and resources from one of the largest money market mutual fund providers in the industry.

Learn more

1195762.1

9C19428D749A4367A255839C6D02AB30

Past performance is no guarantee of future results.

Unless otherwise expressly disclosed to you in writing, the information provided in this material is for educational purposes only. Any viewpoints expressed by Fidelity are not intended to be used as a primary basis for your investment decisions and are based on facts and circumstances at the point in time they are made and are not particular to you. Accordingly, nothing in this material constitutes impartial investment advice or advice in a fiduciary capacity, as defined or under the Employee Retirement Income Security Act of 1974 or the Internal Revenue Code of 1986, both as amended. Fidelity and its representatives may have a conflict of interest in the products or services mentioned in this material because they have a financial interest in the products or services and may receive compensation, directly or indirectly, in connection with the management, distribution, and/or servicing of these products or services, including Fidelity funds, certain third-party funds and products, and certain investment services. Before making any investment decisions, you should take into account all of the particular facts and circumstances of your or your client’s individual situation and reach out to an investment professional, if applicable.

The use of the term "advisor(s)" throughout this site shall refer to both investment advisors and broker-dealers as a collective term.