IN a RACE to BUY the DIP, INVESTORS are SEEMINGLY BUYING AHEAD of ANY PULLBACK!🤦🏽♂️
IN a RACE to BUY the DIP, INVESTORS are SEEMINGLY BUYING AHEAD of ANY PULLBACK!🤦🏽♂️as stocks climb into and past the shutdown! …along with that, Reuters reporters Manya Saini and Niket Nishant reached out to us for commentary on how “US GOVERNMENT SHUTDOWN THREATENS to DISRUPT IPO MARKET MOMENTUM.“
QUOTED EXCERPTS
“A shutdown grinds the SEC to a halt, which means no prospectus reviews, no comments cleared and no green lights for going public,” said Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors.
“It’s bureaucratic purgatory at the worst possible time, just as the IPO market was beginning to thaw from a deep freeze,” Schulman added.
ALSO QUOTED in the article was:
🔵Matthew K., senior strategist at Renaissance Capital
🔵Anthony Saglimbene, chief market strategist at Ameriprise Financial
ADDITIONAL THOUGHTS
A government shutdown hitting during IPO season is like planning a wedding when the officiant’s absent and the doors are chained. However prepared the company may be, the deal can’t close if SEC staff aren’t processing documents.
From a broader market perspective, this injects yet another layer of uncertainty into an environment already jittery about rates, inflation stickiness, and geopolitical flares.
A government shutdown hitting during IPO season is like planning a wedding when the officiant’s absent and the doors are chained.
For issuers, the concern is about timing delays and possible valuation erosion. Momentum matters in IPOs, and nothing kills momentum like limbo.
Investors hate chaos, and a shutdown is fiscal theater at its worst, an extra-long intermission with no popcorn, just indigestion. The paradox is that scarcity can support high-quality deals once the lights come back on. But if the shutdown delays continue too long, deals that had hoped for a debut in early November may get pushed to after the holidays 🎅🏽🎄regardless of whether they are naughty or nice.
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