"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness," Charles Dickens famously wrote. That aptly captures the dislocation between political events and market action as we go into the next week.

The U.S. government shutdown has stoked worries about its adverse impact globally, but it does not seem to have dampened the risk-on sentiment across major equity markets. The political deadlock in Washington, D.C. looks set to continue into next week, with concerns the Trump administration could use the funding freeze to permanently slash roles and cancel certain projects.

While there has been much research on what an extended shutdown could mean for stocks, major U.S. and European indexes have been notching record highs. That comes as f

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