Core Insights - The U.S. stock market has shown resilience in the face of the government shutdown, with the S&P 400 index up 8% and continuing a three-month winning streak [1] - Market experts anticipate a muted reaction from equity markets initially, while bond markets may see a slight decrease in yields [2] - Historical patterns indicate that the duration of the shutdown will significantly impact market sentiment, with longer shutdowns likely causing more damage [3] Market Reactions - The current government shutdown is the 14th since 1981, and while it can lead to market declines, the immediate impact appears limited [4] - If the shutdown persists, retail investors may become more cautious, while experienced investors might look for leverage opportunities [5] Potential Market Winners and Losers - In the event of an extended shutdown, alternative investments such as gold and cryptocurrencies may see increased interest as investors seek safer options [6] - Government bonds and fixed-income products are expected to perform well, with rising prices and falling yields due to a flight-to-safety trend [7]