Market analyst Scott “the Cow Guy” Shellady joined Chicago’s Morning Answer with Dan Proft to discuss the ongoing government shutdown, U.S.–China trade tensions, and the outlook for the American economy heading into next year.
Shellady called the Washington stalemate “childish” but said Wall Street has largely priced it in, noting that previous shutdowns—including the 35-day standoff in 2018—had minimal long-term market impact. He argued that a temporary hit to GDP would be worthwhile if it forces a long-overdue reduction in federal spending. “We’ve bought our growth by dumping trillions into the economy,” he said, adding that the current moment offers an opportunity to “slash and burn” unnecessary government programs before debt and deficits choke future growth.
Turning to global trade, Shellady warned that U.S. leaders must stop assuming China is a partner. He cited evidence of espionage, agricultural sabotage, and Beijing’s aggressive economic strategy as proof the Chinese Communist Party should be treated as an adversary, not an ally. He called for policies that “decouple” critical industries from China—particularly rare-earth minerals—and supported the Trump administration’s plan to launch a domestic “Operation Warp Speed” for rare-earth production.
Despite the geopolitical uncertainty, Shellady expressed optimism about America’s long-term prospects. He said artificial intelligence and innovation continue to drive productivity, even if the technology will displace some jobs. Market corrections are inevitable, he added, but should be viewed as buying opportunities in an economy that has historically expanded over time. “If you’d bought the highs before every crash since 1929,” Shellady said, “you’d still be a billionaire today.”