Tomahawk, WI 10/16/2013 (BasicsMedia) – SPDR S&P 500 ETF Trust (NYSEARCA:SPY) remains one of the most crucial ETFs in the U.S for various reasons. It will be affected by the debt-ceiling deadline that draws near. The debt-ceiling deadline is set for November 2013, which is only a few weeks or days away. One of the things that will happen on this day is that the government coffers may go dry. If you have followed what has been happening in Washington where government shutdown has continued unabated, you must be aware that this is the likely scenario when the deadline finally comes.

SPY Will Benefit from U.S Government Intervention

The U.S Congress has a debt it owes the American public. It has to work overtime to come up with a deal that will end all these uncertainties for the last time. SPY and other ETFs will bear the full effects of such indecisions on the part of the U.S. Congress and other national leaders. The picture coming out of Washington is that our leaders do not care about what happens as we fast approach the debt ceiling deadline. The debt-ceiling deadline would have been disastrous on its own, but now that the government shutdown has been in play, the effects will be huge.

The U.S. government has defaulted on its responsibilities. The effects of this default will be felt in full when we finally reach the debt-ceiling deadline. The domestic and international stock markets will be affected by the debt-ceiling deadline. This will inevitably have an effect on SPY and other ETFs, across the board. Some ETFs were already on a recovery path, but government shutdown has derailed all the gains, and will feel the full effects of all these scenarios in the next few days as the debt-ceiling deadline fast approaches. Right now, things do not look good.

Action is Required Right Now to Help SPY and Other ETFs

Unless something is done quickly to resolve the mess that we find ourselves in, and which the U.S government ought to have taken actions earlier, we can only move forward but with a lot of trepidation. Global financial markets will suffer from the effects that will befall SPY, other ETFs and the local financial market. If there is a lot of a missed payment of interests, this could spill over into other sectors that are al covered within SPY. I advice investors to start paying close attention to what goes on in SPY for the next few days until we reach the deadline.

Investors love volatility ETPs and Gold ETFs. These two financial products provide huge benefits to investors across several industries and sectors. Short dollar ETFs as well as government bonds will suffer due to the changes. SPY is the only tool you can use to check how the different industries and stocks are performing. You cannot afford to look elsewhere since you will miss the pointers and guidelines that SPY would have offered to you. If you miss these pointers, you will not make informed investment decisions and this will affect your bottom line.

Finally, let me reiterate the importance of observing what goes on at SPY. It could save you from losses.

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