We’re recommending that our clients do not make any portfolio changes based on the debt ceiling issue. We can’t predict the timing of any downturn or subsequent recovery. Even this morning (May 25) when we’re within a week of the X date, the S&P 500* is up a half percent one hour into trading. It may get bumpy and we may see significant drops. Because we only recommend using the investment markets for long-term investments, there’s time to allow the volatility and subsequent recovery. We expect that long-term investors will be better off by tolerating this volatility than attempting to time it and potentially missing out on some really good days.
If you’d like to discuss this further and how it relates to your specific situation, please reach out to us.
*S&P 500 Index source as of 9:30 central Thursday, May 25, 2023 – Yahoo Finance.