www.entrepreneur.com | Steve Reitmeister
The S&P 500 (SPY) seems to have hit a wall at 4,600 thanks in part to the surprising downgrade of US debt by the Fitch ratings service. Not only is that taking place, but investors also go served up the 3 key monthly economic reports that have market moving impact. Steve Reitmeister reviews this latest news to update his market outlook, trading plan and preview of 7 top picks. Get full details below.
Forgive my inner child for laughing so hard at this. But one of the greatest investment terms was coined this week in that the market got “Fitch Slapped“.
Meaning that the Fitch ratings downgrade for US debt slapped the investment world into submission this week. Not just a long overdue softening of stock prices as the S&P 500 (SPY) retreated from recent highs. There was also a reversal of course of long term bond rates as they headed higher once again.
Beyond that we also got served up the Big 3 economic reports this week. So there is much investment news to digest to plot our course in the days and weeks ahead.
Plain and simple, the Fitch downgrade of US debt was the “Easy Button” excuse for a long overdue sell off. I don’t believe anyone is terribly worried about a debt crisis occurring any time soon.
That’s because there are several other large developed countries with as high if not higher levels of government debt vs. GDP. One of them will most certainly topple before the US like Japan, Italy, Spain, UK etc.
Yes…when those problems…
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