US Debt Ceiling Update & Market Impacts

Talk Money To Me

In this week’s episode, Candice and Felicity breakdown the US ceiling debt crisis and discuss four likely scenarios to play out as the market nervously awaits a decision from the White House.

We explore the market impacts and ways to best hedge against each scenario playing out. From raising the debt ceiling (scenario 1); to debt service prioritization over other domestic payments (scenario 2); a short default on coupons (scenario 3) and a prolonged, one-month, delay in debt service (scenario 4) we cover all possibilities in this episode to keep you informed.

If the White House can not come to an agreement in time and there is a non-payment on the 1 week and 1 month coupon, we could see a drop of 20% - 30% in the S&P500.

Ouch!

It is not all doom and gloom, as we also go through the bulls & bears case, investment strategies and investable ideas to best protect your investments and capture upside in the current market.

We pitch a few key sectors, investment themes, ETFs and stocks which we think we perform well in all macroeconomic conditions, good and bad.

Follow Talk Money To Me on Instagram, or send Candice and Felicity an email with all your thoughts here.

Felicity Thomas and Candice Bourke are Senior Advisers at Shaw and Partners, and you can find out more here.

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In the spirit of reconciliation, Equity Mates Media and the hosts of Talk Money To Me acknowledge the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respects to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander people today.

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