8 October 2013

The US Budget & Debt Ceiling Stand Off

Tagged with:

by Shane Oliver, Head of Investment Strategy & Chief Economist

Key points

  • The partial US Government shutdown is likely to continue until there is a joint solution to the shutdown and approaching debt ceiling later this month.
  • The debt ceiling poses the greater risk to the US (and global) economy given the risk of debt default by the US.
  • However, the most likely outcome is a last minute increase in the debt ceiling.  And in any event a debt default is unlikely.
  • Shares are vulnerable in the short term as uncertainty intensifies, but are likely to rally solidly into year-end once a solution to the debt ceiling is in place.

Click on link here to read more:

Oct 8, 2013 the-us-budget-and-debt-ceiling-standoff

The author is an employee of Verante Financial Planning in Castle Hill, Corporate Authorised Representative of Magnitude Group Limited, Licence No 221557, Magnitude Group Limited ABN 54 086 266 202.

Previous

Next