Your Black Money: What the Downgrade in US Debt Means for You

7 Aug

black wealth, african american wealth

Money Magazine — United States bonds are no longer officially rated Triple-A, at least in the eyes of Standard & Poor’s.

And while Moody’s and Fitch, the other leading rating agencies, have affirmed the top rating, they too have worried about the long-term prospects for the United States.

None of this necessarily means disaster for your money. The United States has not been downgraded to "junk" status, like say, Greece. The rating is still very high — just not tops. (See "S&P downgrades U.S.")

Still, there could be ripple effects. Here’s where.

Your stocks

Bad news for the economy generally means tough times for stocks. But history shows that when a country loses its AAA credit rating, it’s not necessarily terrible news for that nation’s stock market.

S&P rating downgrade: FAQ

When Canada lost its AAA rating in April 1993, for instance, the country’s stocks gained more than 15% in the subsequent year. The Tokyo stock market climbed more than 25% in the 12 months after Moody’s downgraded Japan in November 1998.

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7 Responses to “Your Black Money: What the Downgrade in US Debt Means for You”

  1. Grady Norwood August 7, 2011 at 7:51 pm #

    What!!!!!!!!!!1

  2. Hollis September 25, 2013 at 12:15 am #

    I like it when people get together and share thoughts.
    Great site, kep itt up!

Trackbacks/Pingbacks

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