030: Fitch Credit Downgrade 08-02-23
Imagine the enormity of our national defense spending, now imagine spending just as much on simply covering the cost of our debt. That’s the stark reality facing the US economy, as Fitch downgrades US government debt from AAA to AA+. This week on ‘Markets with Megan’ we delve into the ramifications of this downgrade, the rising interest rates, and a slowing economy, all of which are causing significant tremors in the equity and bond markets. Join us as our Chief Investment Officer, Megan Horneman, unravels the financial market dynamics, and paints a vivid picture of the looming economic headwinds.
As we discuss the financial storm gathering on our horizon, Megan shines a light on the net interest costs expected to skyrocket by another 50% over the next five years. Fiscal and monetary policies are handcuffed, unable to offer much-needed relief. The episode takes a closer look at the impact of rising interest rates on equities, with a keen eye on the hard-hit tech and high PE businesses. So, tune in to navigate the economic maze, understand the reasons behind the debt downgrade, and prepare for its market implications. Don’t hesitate to reach out with your thoughts or queries at podcast at verdence .com as we continue to decode global economy trends.
