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US shutdown ends, ASX shares recover

The US shutdown has ended, for now, as Congress passes a bill to temporarily fund the government to 8 February 2018 when the whole process may start again.

The Senate passed the bill 81 to 18 and the House of Representatives passed the bill by 266 to 150.

The US political system is known for its adversarial nature and both sides would happily torpedo the other despite the damage it would cause to the country. This doesn’t directly affect most of us in Australia, but it can hurt the value of our shares.

The Australian share market declined yesterday, with US-focused ASX shares being hurt in-particular. However, today has seen that turn around.

Altium Limited (ASX: ALU) went up by 1.92%

Cochlear Limited (ASX: COH) went up by 1.81%

Computershare Limited (ASX: CPU) went up by 1.39%

Nanosonics Ltd. (ASX: NAN) went up by 1.82%

BETANASDAQ ETF UNITS (ASX: NDQ) went up by 1.55%

iShares S&P 500 ETF (ASX: IVV) went up by 1.1%

Vanguard US Total Market Shares Index ETF (ASX: VTS) went up by 1.06%

Clearly, the danger was short lived. I think today is a good lesson of how short term some people can be when it comes to news events, the share market recovered in less than two trading days.

Foolish takeaway

The US, Australian and global share markets are still trading at record highs, or close to it. Donald Trump proudly heralds this rise in value to his economic management, but the higher the price/earnings ratios of markets go, the more likely a crash is on the cards. I’m not sure that the current American administration have the patience, guile or understanding to do anything to fix it now or in the future.

That’s why I’d rather invest in quality Australian shares like these top stocks.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

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Motley Fool contributor Tristan Harrison owns shares of Altium. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS and Nanosonics Limited. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Cochlear Ltd. and Computershare. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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