Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher addresses fears about the US government debt ceiling. Ken says this issue has become more prominent in the media as Congress has been less functional about establishing long-term government spending plans in recent years. Ken observes, however, that we have bumped up against the debt ceiling many times. Even when the US government “shuts down,” capital markets tend to shrug this off and he expects this iteration to be no different.
Ken says there are ample cash reserves to cover government spending until the middle of 2023, but it wouldn’t surprise him if debt ceiling deliberations continue until the very last moment—consistent with recent years. Ken believes a bill will pass eventually and he reminds investors to avoid sensationalist media headlines as the debt ceiling debate should mean very little to stocks.
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