Frens, I've been on a bit of a sabbatical for various reasons, but I'm turning to the only group I trust here. I'm a very mild investor and also have a 401K. Markets nose-dived today with the news of the U.S. downgrade. Trump Truthed about it https://truthsocial.com/@realDonaldTrump/posts/110821789412944769 but he's got more going on w/ this faux indictment version 7,854.
The MSM spin is of course nonchalant "no big deal" and it's Trump and J6 fault B.S.
Some links:
https://www.cbsnews.com/news/fitch-downgrade-us-debt-what-it-means-cbs-news-explains/
https://www.politico.com/news/2023/08/01/fitch-downgrades-u-s-debt-00109288
Can anyone with a bigger brain than mine tell me what this REALLY means and if it's serious cause for concern or just a political ploy? I'm trying to figure out how worried I should be.
Optics are being aligned for the impending, inevitable collapse of the Western Financial System.
Look up what bonds are. Layman’s terms, it’s basically a way for the government to raise money (like a company wants to raise money). The downgrade means there are going to be a lot less buyers of bonds (which is not good for the company/country). This is as simple as I can make it as even I don’t fully understand what the big deal is. Bonds are also not the only thing effected, I just know this is one facet of why a downgrade is not great for our fiat system.
You should become a serious investor in guns, gold and grub.
The rating means next to nothing on its own. But the reality, which is not in the press, is that the currency is going to pop and descend into worthlessness soon. The ratings agency is covering its butt by admitting a smidgen of truth. When S&P, the next ratings agency, follows suit with its own downgrade it will be too late and today's tank will seem like a brief shower compared to the downpour that is coming. Every market is toast. This, along with war, is part and parcel of the scare event that are necessary.
I do not doubt you. In fact I have been slowly parking things in safer spots than the markets for this very reason.
But I am curious, do you mind backing up your thoughts and expanding a bit? What's your reason for the "soon" statement. What else are you seeing?
I honestly am surprised we've lasted this long given wages, shutdown impacts, inflation and spending.
I don't presume to time the market. Nor do I have a plan to take advantage of it. But a downgrade is one of the necessary steps before it happens. That's about it. It's just one signal among many. Soon. But how soon? Don't know ... but sooner now that the first downgrade has happened than before. I'm market-aware but not a market-watcher, just a Q follower.