Moves to Make After Debt Ceiling Resolution
Keep your eye on the ball
A survey released last week of TD Ameritrade (AMTD) clients found that 72% of retail investors are "extremely dissatisfied" with Congress' management of the debt ceiling issue.
Nearly half (48%) called the debt ceiling debate "very" or "extremely" influential on their decision to engage in the markets.
"Policy uncertainties make markets jittery, but these kinds of macro-economic uncertainties are out of retail investors' control," says Lule Demmissie, managing director of retirement at TD Ameritrade. "This is an opportunity for retail investors to evaluate their investment portfolios and make sure they are diversified in line with their current risk tolerance and investment objectives."
"Stay focused on long-term investment strategies and avoid short-term reactions that are motivated purely by fear," he adds.Keep saving, invest wisely
Bob Phillips, managing Partner at Indianapolis-based Spectrum Management Group, fears the focus on the debt ceiling debate may have diverted attention from the broader economic dangers that exist globally. Even once the debt ceiling is resolved, the U.S. faces a staggering debt and spending problem, as well as uncertainty over taxes and regulatory efforts. And all this comes amid the backdrop of the European debt crisis. "The government debt problem is a universal problem around the world," he says. "The debt ceiling is kind of the symptom; the real problem is the underlying fundamentals of the economy." Phillips points out that in many of the recent conference calls that accompanied earnings reports, numerous CEOs and CFOs said they are not making business moves due to Washington's uncertainty.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV