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Shutdown Not a Concern for Investors

Shutdown Not a Concern for Investors

The roller coaster stock market ended higher last week despite the government shutdown.

Unlike the fiscal-fight two years ago, there is budding optimism among traders that politicians will reach an agreement.

“I don't think anyone in American really believes that all these doors will remain shut, the government will remain shutdown and we won't pay our bills,” says North Texas financial strategist Clark Hodges.

Hodges admits a decision on the debt ceiling is key to the market's continues success.

“The market would be concerned about the credit rating on the America's debt,” he says. “I think that's one reason why you're going to see the politicians come to their senses.”

“We don't want our debt to be downgraded by the rating agencies because we depend on a lot of foreign buyers to buy our debt, so that's why I think the politicians will get something done,” says Hodges.

Still, Hodges is telling clients to stay the course, don't freak out yet.

 

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