If you believe the media, the government shutdown is making financial markets turbulent. Do not believe it. In the trading pits, no one sees a “specialist’s book”. Traders do not put comments on their trades. Bottom line, no one in the media knows for sure the reason why a market moves. They may speculate correctly, but they do not know for sure.
Without a crystal ball, it’s impossible to predict the impact of the shutdown. Our advice is to ignore the drama. Earnings season starts soon. Those announcements are important and are the real drivers of the market. To Wall Street, a “beat”, “miss” or “earnings surprise” are far more important than a Nancy Pelosi sound bite. Regardless of earnings, the media will still link the stock market’s course with Capitol Hill shenanigans. Don’t buy it!
