Markets went a little risk-off last week after one of the big three credit ratings agencies, Fitch, downgraded their US credit rating from from AAA to AA+. Included in the reasons for this was “the repeated debt-limit political standoffs and last-minute resolutions” which had “eroded market confidence”. Equities sold-off sharply after the announcement but all major US stock indices remain well above their much-watched 200 day moving averages. US government Bonds also sold-off on the news and longer-term Treasury yields rallied to their highest levels since November.
Full report:
https://realmim.com/fitch-us-downgrade-unsettles-equity-markets-but-trend-remains-up/
Disclaimer: ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy.
This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’