A potential US government shutdown is looming, with significant implications for markets.

- *Gold is likely to benefit*: As a safe-haven asset, gold tends to perform well during times of uncertainty, such as government shutdowns. In fact, gold recently hit an all-time high, driven by shutdown fears and dovish signals from the Federal Reserve. $XAU

- *Stocks may wobble*: Equity markets have historically treated government shutdowns as speed bumps, with the S&P 500 averaging flat performance during shutdown periods.$POWER

However, a prolonged closure could shave 0.1-0.2 percentage points off GDP growth.

- *Crypto volatility*: Cryptocurrencies like Bitcoin may experience increased volatility due to delayed economic data and uncertainty around Fed policy.

- *Dollar weakness*: A shutdown could weaken the US dollar, as investors become risk-averse and dump dollar-denominated assets. $RIVER

- *Data failure and funding stress*: The shutdown would lead to a lack of official economic data, making it challenging for the Fed to make informed decisions. The Reverse Repurchase Agreement (RRP) facility is also almost drained, leaving little cushion for cash protection.

Given the potential risks, it's essential to:

- Review your portfolio and prioritize liquidity

- Consider hedging strategies

- Stay informed about market developments