Fintech executive, writer, math geek, and investment systems developer. Founder and CEO of Altruist and Founder of FormulaFolios.

US Debt Crisis - Some Perspective

US Debt Crisis - Some Perspective

I got some great feedback from my post a couple of days ago regarding our perspective on the US economy and the impact our debts would have on it.  Since the day I sent that out the markets have gotten shakier and the news on the matter has been non-stop.

This morning I received and email from TD Ameritrade that had some really useful perspectives on the matter. If you click this link you can read their economists view.

If the link doesn't work, just copy this long URL into your browser and the article should come up:

http://img.ipost.com/client/t/tdameritradeinst/veo/mic/TD_Economics_Perspectives_On_the_US_Debt_Ceiling_Debate.pdf

I suspect the TV and newspapers will continue to talk about the debt well after the August 2 deadline of raising the debt ceiling comes and goes. Remember to be patient and follow the steps I outlined in my last email. Worry usually results in emotional decisions, and emotional decisions don't generally work out well.

In our Moderate Portfolio (the most common among our clients) our top 5 holdings are:

Cash - 18.4%

US Government Bond - 15.4%

Gold - 4.4%

US Treasury Notes - 4.1%

Investment Grade Corporate Bonds - 4.0%

On a day like today all of these holdings are actually positive despite an atrocious open to the markets. It's not perfect, but following solid rules does help in times of uncertainty.

Thank you for following my updates and have a great weekend.

--Jason

US Debt Ceiling and Treasury Default - Post Congressional Approval

Recession Probability Update - August 2011