(Tuesday Market Open) After a long, snowy weekend across much of the country, a shortened week kicks off with the financial wheels still spinning on some icy patches despite this month’s sparkling stock market rally.
Some of the slippery spots early Tuesday included a softer global economic growth forecast from the International Monetary Fund (IMF) and Chinese economic data that showed the lowest annual growth for the country since 1990.
There’s also the government shutdown, now in its second month. Movement over the weekend seemed slim, judging from news reports, and investors might want to keep in mind growing concerns about how this situation might affect economic growth. With 800,000 Federal employees not collecting paychecks, the lack of cash could start to reverberate beyond those directly affected. Rents won’t be paid, people might be curbing purchases at malls and grocery stores, and airplanes won’t be full.
Delta (DAL) said last week that the shutdown is costing it $25 million a month. Plus, about 10,000 companies hold contracts with currently-shuttered Federal agencies, according to the Washington Post, which estimated the weekly val
Worried about a potential U.S. government shutdown? Learn about the history of shutdowns, what happens during them, and how it might impact the markets.
As January begins, investors' focus could remain squarely fixed on China trade negotiations and the Fed's latest move.
As investors, it’s important to understand the relationship between bonds and interest rates. Find out what happens to bonds when interest rates rise.
In a rising interest rate environment, investors might consider attempting to counter their fixed-income risk by building a bond ladder.
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