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 be left without the money you need to pay your bills. As this June 1 deadline approaches, SmartAsset asked financial advisors what they think if the US defaults and what advice they give their clients to prepare.
to help navigate market volatility Consider working with a financial advisor.
About 90 matchmaking platform consultants smartadvisor Took part in the survey. Respondents reflected on what they see as the biggest risk to investors if the government defaults on its debt obligations.
He also shared how investors can protect themselves from the possibility of loan default EE. you you.
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Nearly 66% of financial advisors chose stock market volatility as one of the biggest risks to investors if the US government defaults on its debt, the highest of any possible outcome.
More recently, economists and analysts have pointed to declining stock markets and rising interest rates as consequences of a default that could shake US and global financial markets.
“This will hurt municipal bond investors and stock/bond holders in the banking sector,” wrote one financial advisor. 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 the respondents, 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 the way foreign investors view the safety of US-backed investments, among other consequences. Another 40.48% respondents chose a possible recession as the likely outcome of the default. Risks range from high unemployment to falling stocks in a recession.
