Another Crisis

The United States just got over the fiscal cliff obstacle and now we are about to face another. This time is about the debt ceiling; if the debt ceiling isnt raised we face a risk of further credit downgrade and a default on our obligations. In anticipation of what is expected to be a tough fight stocks opened lower on monday. From this point forward until the fate of debt ceiling is revealed I will be a cautious investor and will play defensive. Playing defensive means investing in gold and other areas that would take a lower hit. According to CNNMoney.com “After weeks of trepidation over the fiscal cliff, lawmakers reached a last-minute compromise that forestalled the worst of the crisis. But officials in Washington are now gearing up for a fight over the nation’s legal borrowing limit, known as the debt ceiling.If the ceiling isn’t raised by late February or early March, the United States runs the risk of defaulting on its obligations because the Treasury would no longer have enough money available to pay all the country’s bills.”The debt ceiling is the new wall of worry for stocks,” said Anthony Conroy, head trader at BNY ConvergEx Group.” Click here to read the full article.

Leave a Reply