Jim Cramer says government shutdown won’t have a big impact on the market

On Monday, Jim Cramer from the CNBC told investors why the closure of a government would have no major impact on the market and how stocks were looking at how they react to the closure in the past. He said that the primary concern would delay the publication of the basic economic data, which declares the decision of closing the decision of the Federal Reserve on interest rates.

“When it comes to the closure of the government, my message is simple: calm down and continue, because the stock market tends to be good in these situations.” He said.

The Federal government’s chances of closing on Wednesday, the Federal government’s chance of closing on Wednesday, is pricing on Wednesday, as the estimated markets do not agree on a Stopgap bill to ensure that the members of the congress are fully financed on Tuesday. While the Democrats stand intact on their demands to include measures that protect Obamacare Health Insurance subsidies to the Draft, the Republicans insist that such a discussion should be waiting until they avoid a closure.

Cramer admitted that the idea of ​​a closure appeared to be annoying, and that since 2013, the first full government will be the closure of the government. However, he pointed out that the market sees gains following two of the last three full closure, and when he referred to research from analysts, he argued that there was no noticeable tendency to behave. Bank of America. He also said that it is important to distinguish a closure from a debt ceiling default that would endanger interest payments in US treasures. Cramer stated that deputies raised the debt ceiling, so even in case of closing, the US can still pay to bond holders.

Stocks, while all non -compulsory government activities can be stopped, Cramer closure will seriously harm the federal workers, he said. Analysts from several major banks predicted that closure could temporarily dismiss 800,000 or 900,000 people. Bank of America claimed that closing can hit 10 basis points from GDP growth every week. Goldman Sachs 15 points were estimated and Deutsche Bank He proposed 20 points.

According to Cramer, these estimates show that many Americans will not pay and will not be willing to receive something. While the closing may not have much effect for a week, the closure may have a larger economy if it is dragged for three or four weeks.

Cramer also said that a closure would delay the release of vital economic data, and that he would give investors and the FED a little worrying about inflation status and the labor market. The delay may not seem like a big agreement, but Cramer said that the central bank needs information to decide that it would not reduce interest rates. Wall Street is waiting for another segment, but Cramer said the Fed would be more hesitant to do it without enough information. However, he said that the FED can still be cut because a closure for the economy is bad.

“I am not worried about most of these things. My biggest fear is that a closure will delay important economic data pieces, make life difficult for federal reserves and postpone their plans to reduce interest rates potentially.” He said. “I still think it is a long shot. To be honest, if the biggest fear of the closure of a government is delayed data, it is not a reason to worry.”