On Friday, Treasury Secretary Janet Yellen warned the department will not have enough funds to pay all of the nation’s obligations in full and on time if a deal isn’t reached by June 5. This gives lawmakers a few more days to put a package together, but the X-date is still quickly approaching. On Wednesday night, Fitch Ratings laid out a stark warning to the US government: Raise the debt ceiling or put the world’s biggest economy at risk of a downgrade.
“You don’t want to get over-invested with a recession on the horizon,” Reynolds said. In his view, it’s only worth taking advantage of a market sale if the S&P 500 dips below 16% of its current value. Short-term investors should be even more cautious, experts said. Expect volatility in bonds Bond investors should expect volatility even during deal negotiations.