Marketwatch: Why ‘stubbornly optimistic’ investors are brushing aside the threat of a government shutdown this week

Corpay chief market strategist Karl Schamotta described U.S. government shutdowns in general as "typically more farce than tragedy." "Equities usually wobble before rebounding, bond yields stumble and then recover, and moves in the dollar are typically indistinguishable from background noise," the strategist said. Nonetheless, Schamotta conceded that, with stock-market valuations being in "rarefied territory," there is a risk that another hit to confidence in the U.S. political system "could act as a destabilizing influence, driving a new flight to safety among market participants who have become inured to chaos in Washington."

Marketwatch: Why ‘stubbornly optimistic’ investors are brushing aside the threat of a government shutdown this week