The US government shutdown — what does this mean to us?
Last week the US government furloughed approximately 800,000 government workers (of that number about 40,000 were called back to work since they are in the area of defense).
The bigger picture will come next week when a decision to raise the debt ceiling (again) or for the first time ever in the US default on its interest payments to government bonds that have been issued to individuals, corporations and other countries. Oh boy.
Because of the uncertainty of the outcome of the serious market impact I recommend that we not take directional trades. I recommend that we be hedged in all of our positions at least until 17 October 2013 when a decision needs to be made regarding the potential default.
May everyone have a safe, pleasant, blessed and prosperous trading week!