BOSTON (TheStreet) -- Many Americans are relieved, though angered, that Congress worked out an 11th-hour deal so the world's largest economy avoids defaulting on its debt.
But the situation is even worse than they may have feared. After legislators stop playing political games with the nation's debt limit, they will face calls to revive the economy, which has slowed dramatically. Restricting borrowing and raising taxes, which is likely, will put an even larger damper on the economy.
With such dire circumstances, investors now have an appetite for U.S. Treasuries and dividend stocks as they count on income in tough times, says Jason Brady, co-portfolio manager for the Thornburg Investment Income Builder Fund (TIBAX). Investors' reaction to recent economic data reenforces the need for better risk management and dependable income.
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