USA Loses AAA Rating

USA Loses AAA Rating.

The USA has had its soveriegn credit rating i.e.  its ability to repay its debts downgraded by Standard & Poors from AAA to AA+.

In its assessments, Standard & Poors suggests that the debt ceiling deal done earlier this week has not addressed its underlying core problem of controlling government spending.

We suggest, whilst AA+ is still a fantastic credit rating and still means that the USA can service its debts, the markets will view it as costing the USA more to service debt and markets will fall in addition to speculators also seeing an opportunity to gain by hedging against those fall.

Our Investment Warning 12th July - If you did not take action when we advised switching last month ….

We expect markets to tumble further next week and urge all clients to either contact us to switch funds if you chose to take no action following our investment fund red alert on 12th July or switch way from western stockmarkets to safer havens such as property and cash funds for the time being.

Expect precious metals such as Gold and Silver to rise as well as cash funds, property funds and possibly UK Gilt funds.
We also suggest care when switching to fixed interest funds.  We also expect the UK market to suffer given that we are closely aligned trading partners of the USA.  

SWITCH FORMS: Download Switch Form

Download our switch form today and scan to our usual email address or fax it to 01543 672555.  

We are working all weekend to try and action switches ahead of Monday’s trading although many providers will not allow fund switches until Monday.