MLR - Will the U.S. lose its triple-A rating?

Published : April 18 2011 at 18:40 ET
April 18, 2011 - Standard & Poors downgraded revised its long-term outlook on the U.S. to negative from stable. The move creates the possibility of the U.S. losing its triple-A rating. Standard & Poors today said there was a one-in-three chance it would lower the U.S.'s long-term triple-A rating within two years. The ratings company cited lack of action taken by U.S. fiscal policy makers, particularly compared to other countries.

An eventual US downgrade would further catalyze China to decouple the yuan from the dollar, continue their consumption of hard assets, and thus potentially enable China to unload U.S. treasuries faster. With each passing day, the chances of the dollar losing its status as the world's reserve currency increases. It may take a number of years for this to occur, but the clock is ticking.

In the meantime, we will stay the course on suggested ETFs, guidance from the Market Direction Model, our Portfolio Simulator, and of course any buy or short ideas.

This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.