A government shutdown is likely to start soon, causing concern among investors.
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Experts believe the shutdown won't heavily impact the stock market, but it may have contributed to the recent 5% dip in the S&P 500.
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Marc Zabicki, CIO of LPL Financial, thinks any market reaction is already priced in and won't be stark when the shutdown begins.
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September is historically a weak month for stocks, and other factors like rising interest rates and oil prices are affecting the market.
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There have been six government shutdowns since 1990, with the most recent one lasting over a month in late 2018 and early 2019.
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Historically, the S&P 500 gained 5.5% on average one month after a shutdown compared to one month before.
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Experts view shutdowns as more of headline events than bottom-line events for the stock market.
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The risks this time include potential prolonged shutdowns and economic impacts due to a polarized Congress.
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A shutdown could expose stocks to volatility and extended weakness.
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Despite the concerns, recent history shows that government shutdowns are typically short-lived events.
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