Why the US shutdown could be a buying opportunityNick Beecroft
A shutdown of US government departments has begun but investors shouldn't worry, at least not yet. That's the view of Nick Beecroft, the Chairman of Saxo Capital Markets. Despite a slight drop in the value of the dollar, stock markets have largely shrugged off the news.
Nick believes the US government will be functioning again in a week and this could actually be a good buying opportunity. He says you should perhaps lighten up on bonds and buy equities.
If the shutdown goes on throughout the Autumn, analysts say the damage to fragile US growth could be considerable. However Nick says a week's shutdown "won't be too bad". He also doesn't think this will spread to the ongoing debate on the US debt ceiling.