Intuitive Assessment of U.S. Debt Crisis Brief
Posted by Jason Apollo Voss on Jul 15, 2011 in Blog, Intuitive Assessment | 0 comments
Here is a brief intuitive assessment of the U.S. debt crisis. I say “brief” because the negotiations are still ongoing and the details of the resolution are not the important thing. What is important is that the crisis resolves before the 2 August, 2011 deadline.
To me it feels as if Republicans and Democrats are finally focusing on a solution, rather than focusing on opposing one another. To me it feels like there is a very high probability of this resolving before the 2 August, 2011 deadline. At the moment, the scenario that feels most likely is my ‘Scenario 2’ from yesterday’s post entitled, “Overview of the U.S. Debt Crisis.”
If it turns out to be true that resolution happens before doomsday then it will be very good for financial markets worldwide. So if there are investments that you have been sitting on the sidelines waiting to make until there was greater clarity on the situation, and you are comfortable with risk, then now would be the time to invest.
If, on the other hand, you have been sitting on the sidelines waiting to invest until there was a total, definitive end to the crisis, and are therefore risk averse, then wait until a deal is signed.
Jason
