Since I wrote The Weekly Update on 4/7/2023 (Read it Here) we have already seen many of the earnings headlines print just like I reported, “Better Than Expected”.
As that earnings monster is being slayed, along with the dreaded inflation monster, we need a new monster to fret over.
And just like that, here it is:
The Debt Ceiling Crisis!
It would be normal to hear politicians in Washington DC bark back at each other in various tones of snarky. Comments like;
- “We are not even going to have a discussion with them about it.”
- “We have never seen eye to eye on this, so to discuss it is useless.”
Then as the X date draws closer, chatter like;
- “Expect a government default for the first time in our history.”
- “Those people don’t care about you, or they wouldn’t be allowing this devastation to our country.”
And on X day we run out of money for the U.S. to pay our bills;
- “There is no way we will agree to these terms. The other side doesn’t care about destroying our country. Clearly a U.S. default is here.”
Then one day past X day:
- “Well, we are shocked to have an agreement, but we have increased the debt ceiling and all the obligations of the U.S. will be paid in full today.”
So, “yes” the same “debt ceiling” monster as each one before it.
It won’t go exactly like this, but close! During the angst, hand wringing and despair, the valuations of Corporate America will bounce up and down.
It is during nutty and crazy times like this that we as “investors” versus “traders” in ownership of Corporate America will plant the seeds for our potentially bigger financial future, perhaps we can snap a few great companies on the down days!
Our goal here at The WSG is to continue to nibble back thoughtfully, intentionally and purposefully into the ownership of lower risk and lower volatility investments with the cash we hold from our thoughtful liquidations in early 2022.
Remember the old phrase, “Those who focus on the news think things have never been worse and those who study history think things have never been better”!
I’m interested in your thoughts, comments, and observations. Feel welcome to call, email or stop by the office and say Hi.
James O. Lunney, CFP®
CERTIFIED FINANCIAL PLANNER™ Professional
Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.