Nearly 66% of financial advisors chose stock market volatility as one of their biggest risks.
If Congress decides not to raise or raise the national debt limit, America You may run out of money you need to pay your bills. As the June 1 deadline approaches, SmartAsset asked financial advisers what they think if the US defaults and what advice they give their clients to prepare.
to help navigate market volatilityConsider working with a financial advisor.
About 90 matchmaking platform consultants smart advisor participated in the survey. Respondents reflected on what they see as the greatest risk for investors if the government defaults on its debt obligations.
He also shared how investors can protect themselves from the possibility of loan default. USA you you
Scams, crashes, volatility and other crypto ills
Nearly 66% of financial advisers chose stock market volatility as one of the biggest risks for investors if the US government defaults on its debt, the highest outcome of all possible.
More recently, economists and analysts have pointed to falling stock markets and rising interest rates as consequences of a default that could rock US and global financial markets.
โThis will hurt municipal bond investors and stock/bond holders in the banking sector,โ wrote a financial adviser. Investors in these sectors could feel the pinch, especially if the government struggles to pay bond investors and loses confidence in US banking institutions.
According to 46.43% of those surveyed, the second biggest concern was the reduction of the US debt.
A downgrade of US debt could affect investors in government-backed investments such as bonds, and could affect how foreign investors view the safety of US-backed investments, including other consequences. Another 40.48% of respondents chose a potential recession as the likely outcome of default. The risks range from high unemployment to falling stocks in a recession.
You may also be interested in: Laws of Artificial Intelligence and Potential Technology
