Brett Arends has another good article showing what happened during the last showdown between Democrats and Republicans over moving the debt ceiling higher Basically, long US Treasuries and gold did the best.
Here’s the graphic from the article:
Source: MarketWatch
It’s very hard to time events like this though. Markets have been remarkably calm this time compared to the last crisis in 2011. That could change. But selling risk assets (stocks) now means you’d have to know when to buy them back. You always have to be right twice — and that’s usually at least once too often for nearly everyone.
Also, you never know when the market will react. In a subsequent piece, Arends writes that the S&P 500 had a delayed reaction, and suffered its biggest losses in response to the last crisis after it ended.
