The Debt Ceiling Debate Could Spell Disaster For Your Portfolio

As I have written in these pages several times in the past, the Obama government and those who follow will need to be tough and make sure costs are controlled. This may mean austerity programs, but without any type of strict cost control, the alternative would be much worse.

For the investor, in the absence of any government action, the problems of this runaway national debt could translate into less confidence in America globally, which could impact the strength of the U.S. dollar (NYSEARCA:UUP). If this occurs, you should be prepared for a possible slide in the value of the greenback and U.S.-denominated investments, such as equities, bonds, and commodities.

This article is brought to you courtesy of George Leong from Investment Contrarians.

Pages: 1 2

Leave a Reply

Your email address will not be published. Required fields are marked *