The market reaction to today’s credit rating downgrade is rather humorous. In case you haven’t noticed Treasuries and the US Dollar are both rallying. If this isn’t a sure sign that something is distinctly different in the USA than in Europe (where bond investors wet themselves every time a credit rating agency downgrades their debt) then I don’t know what else is. While S&P frets the inability to pay off our debts the investment community continues to seek haven in the very instruments that should be hurt the most by this downgrade….
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.