Vice President JD Vance said Tuesday he believes a government shutdown is imminent, blaming a political impasse over healthcare funding. ‘
However, a recent market analysis from LPL Financial suggests that while the looming shutdown is cooling a recent market rally, any resulting downturn should be viewed as a buying opportunity, asserting that the long-term bull market is not in jeopardy.
Vance Sees A Strong Possibility Of Government Shutdown
“I think we’re headed to a shutdown because the Democrats won’t do the right thing,” Vance stated outside the White House, placing the blame on Democratic leaders for linking government funding to healthcare negotiations.
This political gridlock aligns with market expectations, as betting markets have priced in a 63% probability of a shutdown occurring this week. Democrats have maintained that they will not approve a spending bill without concessions on healthcare, including the reversal of the White House’s Medicaid cuts.
Analysis Says ‘Buy The Dip’ In Case Of A Shutdown
Despite the political turmoil roiling Washington, financial analysts advise investors to look at the historical context. LPL Financial’s report notes that government shutdowns are typically …