How should I invest if I believe the US debt limit debate won't be settled on time?
June 15, 2011 3:17 PM Subscribe
The debt limit will be reached August 2nd. Moody's said they may downgrade the US credit rating as soon as mid July if the debt limit isn't raised.
What are the scenarios that might play out, and how can I invest for each scenario? Investing goals would be preserve value and seek growth.
posted by gearspring to Work & Money (6 answers total) 3 users marked this as a favorite
Meanwhile Greece isn't making the Euro very strong. So betting against the dollar might not work?
Scenario - Moody's downgrades from AAA. Does the cost to borrow really go up? Are Treasury bonds special so the rating won't matter?
Scenario - Deadline reached and default.
Scenario - Deadline reached without compromise, but crisis held off by selling gold or who knows what.
Scenario - I am wrong, and compromise reached. How did my investments do?
Investing funds can be inside a roth, a 401k, or taxable account.