The U.S. government shutdown is well into its third week, making it the longest shutdown ever. But this is more than a national embarrassment - it could mean less profit for you too.
Fortunately, we have a way around that...
While all eyes are on U.S. President Donald Trump and his battle with Congress over a $5.7 billion border wall, investors must understand how the shutdown's impact on regulators will affect stocks, bonds, and other assets as the shutdown drags on.
Today, we'll show you the 10 ways the government shutdown affects you.
But there's opportunity here too.
We want to show you a company immune to the shutdown that Wall Street is overlooking right now.
And we expect the stock will break out by more than 70% this year, after the government shutdown ends...
The government shutdown led to the furlough of 800,000 federal employees and the closing of nine federal departments and agencies after their funding ran out on Dec. 22. Those numbers could increase the longer this government shutdown continues.
Furloughed federal workers did not receive their paychecks for the first time last Friday, prompting worries about agency morale and concerns that many employees may bolt for the private sector. President Trump said he will sign an order to provide back pay for federal workers once the government reopens. But for many employees, missing just one paycheck could affect their mortgages, car payments, and their credit ratings.
How to Profit Off This $11.1 Billion Money Pool: By following a few simple steps, one IRS directive could help set you up to receive checks of up to $1,795 every single month thanks to a genius investment. Learn more...
But the shutdown extends beyond just employee pay and longer TSA lines at the airport.
The shutdown is having a profound impact on agencies' ability to regulate public markets, to produce critical public data, and to enforce oversight on a range of critical matters.
These are the 10 most important ways the shutdown affects your money:
Now for the good news.
The government shutdown will end eventually.
And we've uncovered one stock that could see a big jump once the government reopens. This is the sort of event-based trade that just doesn't come along very often...
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The shutdown has created investment opportunities for smart investors willing to take a contrarian approach to this standoff.
One stock that stands out right now is Providence Service Corp. (NASDAQ: PRSC).
The company contracts with the government, so it's been caught up in the shutdown sell-off. But it's still getting paid during the shutdown, which means its earnings haven't been hurt. Plus, we can expect a pop in the share price once the shutdown ends.
Operating in 18 states, PRSC provides tech-enabled healthcare and workforce development for the public sector.
A significant amount of the firm's revenue comes from non-emergency medical transportation. The firm takes about 200,000 medical trips per day, serving the disabled and impoverished Medicare and Medicaid recipients. Now, the company doesn't even own any vehicles. It outsources transports from cab companies, vans, ambulance services, and so on. It then processes bills and calls while overseeing the quality of delivery for these services. It's ultimately reimbursed by the government agencies that oversee care for these recipients.
The company also faces very little competition and has contract/customer retention rates around 90%. Its business model is fascinating, given that it has very little overhead and its contracts are fixed and effectively guaranteed.
Shares fell sharply with the broader market during the second and third week of December. But it appears that the shutdown isn't going to affect operations (Medicare and Medicaid have been largely spared by the shutdown and remain funded).
Providence shares have retreated from $67.11 one month ago to $62.50. But the upside here remains quite appealing. According to Yahoo! Finance, Wall Street has a one-year price target of $107 per share. That figure represents potential upside of 71% from Monday's trading level.
Forty-six years ago, Congress passed an obscure piece of legislation known as Public Law 92-313. And today, it's why the Treasury is sitting on top of an $11.1 billion pile of money.
Fortunately, Americans from coast to coast have discovered a loophole that entitles them to a sizable portion of this cash.
And they're racing to add their names to a special distribution list.
Some are now receiving monthly checks worth $1,795 each. Others are collecting $3,000, $5,000, or more every month. If you want to join them in this powerful investment income stream, you better hurry up.
Because this cash is getting scooped up left and right! Read more...
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.