Navigating Market Turbulence: Citi's Shutdown Playbook for Investors

Citigroup's research team has analyzed the potential impact of a government shutdown on various assets. They believe a shutdown is likely but may be short-lived. While the shutdown could trim GDP growth, the market as a whole may experience heightened uncertainty and increased volatility. Stocks with significant exposure to the government are expected to underperform during a shutdown but rally once it ends. The dollar tends to weaken before and after funding gaps commence, while gold may serve as a hedge during a prolonged shutdown.