On August 2, Fitch Ratings downgraded U.S. debt, sending bond yields higher and equities lower. Though timing is a bit strange, this downgrade now adds another concern for investors, adding to elevated valuations, economic uncertainty, and a potential Federal Reserve policy mistake. While the news of the downgrade is concerning, we have 2011 as a
We think a recession is still possible over the next 12 months, but we think it could be a mild recession. A strong labor market and service economy could hold up the economy as companies adjust to higher interest rates. Markets could be volatile; however, we do expect market fluctuations.
To read Cetera Investment Management's latest commentary in detail on the topic, click the link below.
We reiterate our recommendation for increased diversification.
We can help you align your portfolio with your long-term investment objectives. Creating a financial plan you can monitor and follow helps avoid distractions and stay focused on what you can control.
As always, please reach out to the office if you have any questions.