Impact of the U.S. Sovereign Debt Downgrade by S&P

Impact of the U.S. Sovereign Debt Downgrade by S&P

My good friend and ContraryInvesting.com favorite Jonathan Lederer published his analysis of the US debt downgrade fiasco for his clients, and was kind enough to let me republish for you here.  I agree his points, especially #’s 1 and 5…the chart of Japanese rates continuing to pancake after their downgrade is quite an ode to the powers of deflation!

Thoughts on the U.S Sovereign Debt Downgrade

By Jonathan Lederer, President, Lederer Private Wealth Management

So much for a quiet summer weekend!

Standard & Poor’s (S&P) announced early Friday evening that it downgraded U.S. sovereign debt from AAA (highest possible rating) to AA+. Since that time, I have observed much scaremongering in the mainstream media. I therefore felt compelled to share my thoughts as they pertain to the investment implications of S&P’s action.

2011-8-7 Lederer PWM US Sovereign Debt Downgrade Update

Categories