Increasing Debt and Slow De-dollarisation Pose Risks for US Sovereign Rating

At Extreme Investor Network, we understand the importance of staying informed about the potential impact of government policies on the stock market and economy. In a recent analysis, it was highlighted that the composition of the next government and Congress will play a crucial role in determining fiscal controls. A divided government is likely to lead to tighter fiscal controls, while a unified government (regardless of party affiliation) may result in increased government expenditure.

Furthermore, the status of US Treasuries as a global safe asset could be tested by the outcome of the upcoming elections. While the US currently benefits from being viewed as a safe haven during times of crisis, there is a growing trend of de-dollarization as other countries promote their own currencies. The outcome of the elections, especially in the scenario of a second Trump presidency, could impact the global perception of US Treasuries and potentially lead to a shift in demand for other safe assets.

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It is essential for investors to stay informed about these potential changes and how they may impact their investment portfolios. For more insights on economic events and trends, be sure to check out our economic calendar for the latest updates.

Our team of experts at Extreme Investor Network, including Senior Director Dennis Shen and analyst Brian Marly from Scope Ratings GmbH, are dedicated to providing valuable insights and analysis to help investors navigate the ever-changing landscape of the stock market. Stay tuned to our website for more exclusive content and expert perspectives on all things related to investing and trading.

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