So the US has just had its first trading day since S&P downgraded US debt to AA. A downgrade in anyone’s debt would normally result in an increase in yields as the debt is viewed as riskier so investors expect a higher yield to be compensated for that risk. What happened in the US overnight …
Daily Archive: August 8, 2011
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Aug 08
Market Panic…dodgy thoughts
Many many retail investors are panicking, withdrawing their funds and shifting into lower risk investments (mostly cash). Advisers and head office staff are looking for communications to calm investors down but unfortunately the current market situation is that there isn’t necessarily a right answer. Whilst I don’t believe the S&P downgrade of US debt is …
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