Government Bonds Downgraded – What Does That Mean to Me?

On August 1, the Fitch Ratings agency downgraded the US debt from its top rating of AAA down a notch to AA+. This is the second time this has happened. Ironically, that was also in August but twelve years again 2011. At that time, the Standard and Poor’s downgraded US treasury debt from AAA to AA+.

 

So why is this happening now and what does it mean to us as we save for and in retirement?

 

Here’s some of what we discuss in this episode:

• Don will provide some background and a big picture view on what’s happening with these ratings.
• Why does this downgrade seem like it’s getting less of a reaction?
• Could we continue to slip even further with more downgrades in the future?
• The stock market’s response over the next decade was still very positive after the last downgrade.
• As an investor, what are the different lessons we can take from last time?
• What does the downgrade of 10 banks mean for me?
• Where do we go from here and what will Don be watching in the future?

 

Get in touch with Don and learn more: https://doncashpodcast.com/