Even if a downgrade in US credit is not imminent, the underlying conditions that raised such fears are worrying investors about what the future holds.
The move Thursday by Standard & Poor’s to cut Britain’s credit outlook has raised fears that the US may be next.
Should that happen, the news likely wouldn’t be good for stocks, while the dollar and Treasury prices would dip and gold probably would benefit as an investment of last resort.
While a number of experts, including Moody’s, largely dismissed such concerns at least for the short term, market experts were leery of what could happen down the road should the country continue to pursue its current debt policies.
“We are heading down a virtually irreversible road where the overall financial picture of the US is going to look very bad,” said Peter Tanous, president and director of Lynx Investment Advisory in Washington, D.C.
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