The end of the "shutdown" is just another change of scene in American politics

The 2025 shutdown crisis may be coming to an end, and the market is relieved, the media is cheering, and politicians are smiling. But we’ve seen this political drama playbook too many times: creating panic, staging confrontations, and then announcing a "miraculous resolution."

This time, the "stopgap" plan for the shutdown is a temporary budget agreement. It seems like a win for everyone, but in reality, no one truly benefits. The fiscal deficit continues to expand, debt surpasses $35 trillion, and U.S. creditworthiness is still being "discounted" by the market.

The capital markets reacted positively in the short term—stocks rebounded, bond yields fell—but funds have not truly flowed back. Investors are well aware: this is just another political placebo, not an economic cure.

The shutdown crisis is a cyclical product of American politics. Today's "resolution" is just a preview of tomorrow's "script." The market breathes a sigh of relief, but don’t let your guard down.