Brew Markets Why the Markets Don't (Yet) Care About a Govt Shutdown & Is Costco Overvalued?
Sep 29, 2025
Explore the potential impacts of a government shutdown on the markets, revealing surprising historical responses. Dive into Costco's recent earnings and discuss whether its stock may be overvalued despite impressive membership revenue. Uncover the concept of OpCo/PropCo structures and how they can unlock value for companies. Also, hear about Electronic Arts' record-breaking $55 billion take-private deal and Etsy's innovative sales strategy through ChatGPT. Get insights into market movers and trending stocks!
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Markets Largely Shrug At Short Shutdowns
- Historical shutdowns cause modest, short-lived market dips rather than prolonged crashes.
- Markets treat shutdowns as temporary political standoffs unless they threaten debt ceiling or confidence.
Monitor Duration And Debt-Ceiling Risks
- Watch shutdown length because prolonged closures can dent consumer confidence and GDP.
- Monitor debt-ceiling fights closely since they can unsettle both equities and treasuries.
Producer John’s Costco Membership Tale
- John shared Costco stats: ~900 warehouses and 27 added last fiscal year.
- He also noted membership fees alone brought in $1.7 billion last quarter.