Hey, Risers!
Cut-rate.
Earnings came in a torrent this week, as did economic data. The big news that sent investors to the sidelines, surprisingly, was a debt-rating downgrade for the U.S. government. Will this be the end of the bull run for stocks? We don’t know. As longtime readers of this space know, we will stick to our fundamental-investing knitting.
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Economy & Markets
Rogue’s gallery.
Life’s a Fitch
Fitch, a debt-ratings agency, downgraded the credit rating of the US to AA+ from the highest rating of AAA, due to “expected deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance.” Treasury Secretary Janet Yellen called the downgrade “arbitrary” and “based on outdated data.” The downgrade is the first for the U.S. government since the S&P downgrade of 2011.
Our take: A higher cost of capital is the last thing the debt-laden U.S. government needs right now.
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