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Gold Hits Record And Bitcoin Rises Amid Government Shutdown Uncertainty

1. Gold prices hit record highs amid economic uncertainty from a government shutdown. 2. Bitcoin also surged nearly 7% as investors sought safer assets. 3. Past government shutdowns led to only minimal impacts on the economy. 4. S&P 500 has historically rallied after previous shutdowns, despite short-term declines. 5. Key economic data releases might be affected by the ongoing shutdown.

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Why Neutral?

While economic uncertainty often impacts stocks negatively, past government shutdowns led to recoveries. The minimal impact on economic growth suggests stability in corporate earnings may prevail in the long term, buffering the S&P 500.

How important is it?

The article discusses risk aversion resulting from government shutdown uncertainty which can influence investor behavior in equities like the S&P 500.

Why Short Term?

Historically, government shutdowns have been brief with limited long-term effects but can cause temporary volatility in stock prices.

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