As of now, the U.S. government is still on track to shutdown tomorrow in the absence of a spending plan for the new fiscal year approved by the nation’s leaders. Forecasting what the market reaction to this will be is difficult since reactions to previous shutdowns have varied.
Reuters has looked at the 11 U.S. government shutdowns that have occurred since 1981 and charted the S&P 500 performance before, during, and after each. Generally, the performance after a shutdown period has ended has been positive. The most recent shutdown in 1995 was followed by the S&P 500 gaining nearly 5% in one month.
Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More