Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

What would you do and how do you see it if debt limit kerfuffle turns into a nothing burger?

Question: Would you change your approach if this debt limit kerfuffle gets resolved? Do you see markets going up down etc and why?

Seems to be from where I sit layoffs are accelerating bigly...not sure if that is good or bad for the stonk market as crazy as that sounds...

Baseball FRan

Comments

  • Nothing different because I assumed the issue would get resolved at the last minute because that’s what has happened in the past. The consequences of default are so dire that everyone except the biggest whack jobs would not want to default. Admittedly, about 30-40% of Congress are whack jobs but that leaves enough sanity to work something out.
  • edited May 2023
    I didn't change my investing approach due to this manufactured debt ceiling crisis.
    I will therefore not make any corresponding changes afterward.
    My guess is that stock markets will go up in the short-term after this matter is resolved.
    Beyond that, I have no idea what the markets will do.
    Regardless of the outcome, this is not a "nothing burger."
    It is extremely irresponsible to use this maneuver and risk confidence in our nation's ability to pay debts incurred.
  • edited May 2023
    Part of @BaseballFan ‘s question seems to relate to the prognosis for the U.S. economy. None of us have a crystal ball. The person who might know the most on that would be Chairman Powell. I don’t think he’s really shown his hand yet. At what point would the Fed be willing to stimulate should we enter recession? Obviously if we plunge into something like the 1930s or even the 2007-09 mess, all bets are off. Risk assets would tank. Most of us would be poorer.
  • The one thing I've been doing for the past 6 months is periodically adding to IAU (gold etf), all in anticipation of this debt B.S. The only thing I may do after settlement, if it is not a kick-the-can settlement, is unwind the gold exposure.
  • In the spirit of Dr. Strangelove: "How I Learned to Stop Worrying and Love the Bomb". Whatever comes, comes and I will ride it down if it breaks loose. Yee, haw, here we go again.
  • Anna said:

    In the spirit of Dr. Strangelove: "How I Learned to Stop Worrying and Love the Bomb". Whatever comes, comes and I will ride it down if it breaks loose. Yee, haw, here we go again.

    The original ending of the movie was supposed to be a massive pie fight in the war-room. Somehow that feels like a totally appropriate way to end the forthcoming "Dr Gridlock: How I Learned to Stop Worrying and Love the Debt Ceiling."
Sign In or Register to comment.