Congress missed a midnight deadline to agree on a spending bill, resulting in a partial government shutdown. After the shutdown is resolved, the focus will be on the debt ceiling. In such a volatile political climate, it is amazing how well stocks have reacted to the negative pressures.
Perhaps investors are becoming more aware of history, as the 17 government shutdowns since 1970 were all settled in several weeks, and the market averaged a gain of 0.7% one month later, according to SentimenTrader. Or perhaps the public is just out of the market and the professionals know the score.
Whatever the reason for the market’s refusal to collapse, there are some stocks that should be sold merely because they are poor investments. For example, the yields on royalty trusts are doomed to dwindle. And there are companies, like those in the coal industry, that are bucking political headwinds that cannot be overcome.
Here is our list of stocks to sell in October: