A recent research conducted by Citigroup (NYSE:C) has shed light on the potential implications of a U.S. government shutdown on various sectors of the economy and markets. The study, released on Friday, examined the possible volatility in equity and fixed income, stock market performance based on the duration of the shutdown, and the impact on individual stocks with significant government exposure.
The study identified Pfizer (NYSE:PFE), Accenture (NYSE:ACN), and Boeing (NYSE:BA) as among the top ten stocks likely to be affected by a shutdown. These companies have significant exposure to government contracts and could face notable challenges if a shutdown were to occur. The report did not specify the extent of the potential impact or the particular sectors within these companies that might be most affected.
In addition to identifying potentially vulnerable stocks, the Citigroup report also underscored the role of perceived safe havens during budget crises. During times of economic uncertainty, investors often turn to assets that are seen as less risky. The study noted distinct gold price actions around long and short shutdowns, indicating that investors may consider gold a safe haven during times of government shutdowns.
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