This week, Fitch downgraded US Debt from a AAA rating to an AA+ rating. This is a significant event as it marks the second time in history such a downgrade of US debt has occurred.
In the latest edition of “Making Sense,” Ed Butowsky reflects on a previous news appearance from 2011, during the last debt downgrade, and discusses what the current debt downgrade could potentially mean for both the stock market and your investments. By analyzing this historical event and its potential implications for the present, he aims to provide valuable insights to investors and individuals concerned about their financial decisions.
As an experienced investment advisor, Ed Butowsky draws on his 35 years of industry expertise, having successfully navigated through similar situations in the past. Be sure to reach out today with any questions you may have.
Below is a summary of this week’s video:
- In 2011, the debt downgrade was a major event in the financial world and it had a significant impact on the US economy. However, the downgrade did not have the long-term catastrophic effects that some people had feared and expected. The US economy continued to grow, and the US government was able to continue to borrow money at low-interest rates.
- This week’s downgrade will not have a large impact on your portfolio, and may only be relevant if you own fixed-income investments.
- Inflation, interest rates, and overall economic direction are much more important to the market direction than this week’s events.
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