Government Shutdown Sparks Market Jitters -- Should Investors Turn to Gold and Other Alternatives?

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Reuben Gregg Brewer, The Motley FoolWed, October 8, 2025 at 3:30 PM GMT+2 5 min readThe U.S. government is in the midst of a "shutdown" as lawmakers fail to reach agreement.But the government isn't fully shut down, and the effects of this event are likely to be short-lived.Don't dump your long-term investment plan, but owning some gold or crypto isn't necessarily bad.These 10 stocks could mint the next wave of millionaires ›The media headlines are screaming that "the government is shut down!" But that's not entirely true. Essential services are still being provided, and there's no expectation that they will stop even if the shutdown drags on.Here's why the shutdown isn't a great reason to dump your long-term investment plan and buy gold or other alternative investments, like crypto. However, owning some of those investments might not be such a bad idea if you think long term.Prior to the shutdown, the Social Security Administration (SSA) created a contingency plan. The SSA employs 51,825 people. In the event of a shutdown, the SSA intended to furlough just 6,197, leaving it with 45,628 employees still working on making sure Social Security checks get mailed each month. That is far from being completely shut down.Image source: Getty Images.Yes, many government jobs will be affected, and some employees will have to temporarily work without pay (they'll get retroactive pay when the budget impasse is resolved). But, for the most part, this isn't going to materially affect most peoples' lives, even though the media is covering the issue non-stop.In fact, the worst U.S. government shutdown in history lasted 35 days. That's about one month. You shouldn't make long-term investment decisions based on events that are probably only going to be an issue for a single month. The shutdown just isn't likely to be a long-term problem. So buying gold or some other alternative asset to "protect yourself" from this specific event could turn out to be a mistake.Look at the S&P 500 chart below, which starts in 1974, when the Congressional Budget Act was passed and government shutdowns became a thing. The S&P 500 has continued heading steadily higher over time, despite government shutdowns. That's one reason why materially changing your portfolio because of a shutdown is probably a bad idea.^SPX data by YCharts.But there's another factor to examine as well. The S&P 500 index has not headed uniformly higher. It has gone through periods of good and bad performance, as it always has. These bull and bear market swings are normal, but they can be hard to live through. That's why long-term investors often focus on crafting diversified portfolios.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,791.25 +12.00 (+0.18%)Dow Futures46,667.00 +74.00 (+0.16%)Nasdaq Futures25,342.25 +53.00 (+0.21%)Russell 2000 Futures2,490.90 +7.70 (+0.31%)VIX16.43 +0.13 (+0.80%)Gold3,992.10 +19.50 (+0.49%)PortfolioSign in to access your portfolioSign inTop gainersGGAL Grupo Financiero Galicia S.A. 34.50 +6.14 (+21.65%)PATH UiPath Inc. 18.51 +2.93 (+18.81%)BMA Banco Macro S.A. 51.54 +7.66 (+17.46%)BBAR Banco BBVA Argentina S.A. 9.73 +1.41 (+16.95%)AKRO Akero Therapeutics, Inc. 54.08 +7.59 (+16.33%)Top losersRACE Ferrari N.V. 407.38 -71.83 (-14.99%)ODD Oddity Tech Ltd. 51.63 -6.55 (-11.26%)NEU NewMarket Corporation 779.20 -93.89 (-10.75%)CC The Chemours Company 13.74 -1.30 (-8.64%)EXK Endeavour Silver Corp. 7.59 -0.68 (-8.22%)Most activeTLRY Tilray Brands, Inc. 2.1000 +0.3800 (+22.09%)NVDA NVIDIA Corporation 192.57 +3.46 (+1.83%)PLUG Plug Power Inc. 3.7800 +0.1250 (+3.42%)BBAI BigBear.ai Holdings, Inc. 7.49 +0.20 (+2.74%)RGTI Rigetti Computing, Inc. 47.11 +3.88 (+8.98%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersAPLD Applied Digital Corporation 29.29 +1.35 (+4.83%)RACE Ferrari N.V. 407.38 -71.83 (-14.99%)TLRY Tilray Brands, Inc. 2.1000 +0.3800 (+22.09%)NUAI New Era Energy & Digital, Inc. 2.8300 +1.2900 (+83.77%)LAES SEALSQ Corp 6.09 +1.73 (+39.68%)Top economic events