We truly don't know what the long-term impact of a downgrade in our country's AAA rating on the world's markets will be. But it is a serious negative in these recessionary times.
So, what about you, the little investor who used to believe in the full faith and credit of the U.S. government? Is there a call for action here?
Yes, but it has nothing to do with your investments. Unless you are a day trader, an options trader or a person who is investing for the next quarter's return, leave your well-diversified, long-term holdings alone. Practically speaking, the only thing you can do is to write to your Congressman or woman and share your concerns. Unfortunately, if the media portrayals are to be believed, there are a mere pitiful few in Congress who listen to anything but their own rhetoric and ideology.
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Donald E. Askey, a Certified Financial Planner™ professional and president of Provident Advisory Group, is a registered fee-only adviser, headquartered in Newburyport. For questions, visit www.providentadvisory.com.