Last week, our government shut down for the first time since December 2018. It lasted 35 days, the longest in U.S. history. But I don’t expect this shutdown to last that long.
Although we’re several days into the shutdown, the market doesn’t seem worried. In fact, all the major indices have been up since last Wednesday, when the shutdown was announced.
Now, what’s encouraging is that this broader strength is in line with what Bespoke Investment Group found regarding the market’s response to the six previous government shutdowns.
A week after a shutdown, the S&P 500’s median gain was 0.6%. A month later, it was up 2%, in three months, 6.6%, six months, 12.1% and 19.7% a year later.
The bottom line is that the stock market doesn’t get screwed up during shutdowns. So, in today’s Navellier Market Buzz, I’ll further explain what the shutdown means for investors. We’ll also talk about how the latest private payroll reports impacted the markets and my favorite AI stocks right now, specifically defense and data centers stocks.
Click the image below to watch now.
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Another Way to Profit During the Shutdown
As I mentioned, I’m not expecting this shutdown to last as long as it did in 2018. And while Congress can’t seem to come to an agreement now, there is one thing for which both parties are willing to put their differences aside.
It’s called “Project Yorktown”.
The name is inspired by the Battle of Yorktown in 1781, which ended the Revolutionary War and secured America’s independence from Britain.
President Trump is looking to do the same thing: secure economic independence from foreign rivals.
This project is set to activate on October 21. On that day, $4 trillion of capital will be injected into a special sector of the market. And if investors position themselves early, they could see 10X returns in 12 months, 30X in three years and potentially 100X by 2030.
To explain why and how Project Yorktown is going to happen, my friend and InvestorPlace colleague Luke Lango sat down for an exclusive presentation earlier this afternoon. Plus, Luke gave away a free stock pick poised to double in the next 12 months.
Go here to check out the replay.
Sincerely,
Louis Navellier
Editor, Market 360
