by Louis Navellier
The stock market continued to recover last week despite ongoing uncertainty about the partial federal government shutdown and British debates over Brexit. Other than the IRS recalling 46,000 furloughed employees to process tax returns, it looks like the federal government shutdown will continue to escalate. I am betting that the shutdown persists through the State of the Union address on January 29, since President Trump is digging in on his border security demands and will likely relish lambasting Congress.
So far, the S&P 500’s 14% recovery since December 24 has coincided almost exactly with the shutdown dates. Last Thursday, the market rallied on news that President Trump had abruptly cancelled the use of a military plane for House Speaker Nancy Pelosi’s overseas trip to Afghanistan, Egypt, and Belgium, along with other Congressional representatives, but he allowed them to fly “commercial.” As President Trump cracks down on Congressional junkets, as well as mocking them for running off with lobbyists to warm-weather resorts, he is basically trying to force representatives to stay in Washington to work on a solution.
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