The Appropriations Bill that was passed last night by the Senate and the House, and signed by the President today, funds the U.S. government for two weeks, through December 22. All assumptions are that Congress will raise the debt limit again. That action should avert a credit downgrade for now. However, in a press release, Fitch Ratings notes that, while not raising the debt limit is the most significant short-term risk to the U.S. AAA Rating, “debt dynamics are also negative, which could put pressure on sovereign creditworthiness over the medium to long term.” (Translation: the astronomical U.S. debt could result in a credit downgrade soon, unless the debt limit shenanigans force a downgrade sooner.)
Headlines and the Administration are all pointing to stocks reaching all time highs, 4.1% unemployment and 3.3% GDP growth rate in the 3rd quarter as signs of a healthy economy. In fact, Fitch has raised GDP growth expectations for 2018 to 2.5%. However, touting those gains leaves out a lot of other relevant facts.
Investor sentiment is positive. Everyone is happy with the Wall Street gains. However, this reminds me of the focus groups studies in 2002 that confirmed everyone liked mini vans and Hummers. Once gas prices jumped, all of the sudden everyone loved fuel efficiency. Once a Wall Street correction begins, and corrections happen in relatively predictable patterns, sentiment is likely return to where it was when the Occupy Wall Street movement began, in the wake of the Great Recession.
If you are trading on headlines, you’ll always be late to the party and one of the worst casualties of the crash. Vision and foresight are valuable commodities.
If you would like to protect your assets now, to reduce debt, adopt a thrive budget, save thousands of dollars every year in your annual budget, live a richer life, and have more money for bucket list vacations, while providing far better for your future, then it is important to learn the ABC’s of Money that we all should’ve received in high school. Our team offers free blogs, free monthly teleconferences, free budgeting and investing web apps, three bestselling books, private prosperity coaching, a second opinion on your current budgeting and investing strategy, and a three day Investor Educational Retreat where you can learn and implement all of this wisdom here and now, before the next downturn.
Call 310.430.2397 to get answers to your money questions and to learn real solutions that will transform your life. Receive the best price for the Valentine’s Retreat in the beautiful beach town of Santa Monica, California when you register by Dec. 15, 2017 (during the Early Bird pricing period). Only a few seats remain available, so secure your place now, while you can.
Happy holy days.
Natalie Pace is the co-creator of the Earth Gratitude Project and the author of The ABCs of Money, The ABCs of Money for College, The Gratitude Game and Put Your Money Where Your Heart Is. She blogs on Huffington Post and Medium, and is a frequent guest contributor to national news shows and magazines. She has been ranked the No. 1 stock picker, above over 830 A-list pundits, by an independent tracking agency, and has been saving homes and nest eggs since 1999.