SPY | SOURCE: THOUGHTS ON THE MARKET
Jan 29, 2026 IC-REF: cdcf09d7

SPY: Valuation Sensitivity to Macro Regimes

Executive Thesis: Morgan Stanley's analysis confirms government shutdown risk is calendar-driven rather than fundamental, with historical precedent showing modest and reversible macro impact of ~0.1% GDP per week for full shutdowns, while current partial shutdown would be even smaller.


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