Retain a full allocation to equities, says Wilmington Trust's Meghan Shue

Economic Impact of Government Shutdown - Historical data suggests that government shutdowns do not have a significant economic impact, particularly if they are short in duration [1] - Typically, economic activity may decline by 0.1% to 0.2% per week during a shutdown, but this is usually recovered once the government reopens [2] - Recent shutdowns have seen the S&P 500 remain flat or even increase, indicating investor resilience [2] Labor Market Observations - The current labor market is experiencing a slowdown in job demand, with no significant increase in layoffs, leading to a stagnating job market [4] - Potential furloughs could escalate into layoffs, which may negatively affect an already soft labor market [3] Consumer Discretionary Sector Insights - The consumer discretionary sector presents various opportunities despite the tightening job market, as it is a differentiated sector [4] - The bottom quintile of consumers is facing cash and debt challenges, while the majority of the consumer cohort remains stable [4] - This stability in the broader consumer base supports ongoing investment opportunities within the consumer discretionary sector [4]