My pal Jonathan Lederer, President of Lederer Private Wealth Management, compiled an excellent FAQ regarding the debt ceiling issue, with his take on a recommended investment approach. Jon was kind enough to allow me to republish his piece here.
Debt Ceiling Q&A
By Jonathan Lederer, President, Lederer Private Wealth Management
With less than three days until the (supposed) deadline to raise the U.S. federal debt ceiling, Congress and President Obama still do not appear close to agreeing on legislation that would enable to the Treasury to increase its debt levels. Though I continue to think that an agreement will be reached before August 2, it is far from guaranteed.
During the past several weeks, I have fielded an increasing number of questions from clients concerning the possible economic and investment implications should lawmakers fail to raise the debt limit in a timely manner. I have compiled a list of the most frequently asked questions along with my thoughts and strategies, and I have included them in the attached file.