When Two Wrongs Can Make a Right
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
By Editorial Staff, Fisher Investments MarketMinder
NEW YORK ( Fisher Investments) -- In recent weeks, it's easy to find a lot to be frustrated about regarding markets. First, the political bickering over the debt ceiling along with associated overstatements about what would and wouldn't happen if it weren't raised. Then, following a debt limit deal, markets still sold off into correction territory. But if all this frustration weren't enough, S&P decided to push forward with a downgrade of U.S. debt -- from AAA to AA+.
There are those who have claimed -- and seemingly continue to claim -- a debt downgrade represents a fundamental negative. While we can agree this has impacted sentiment in the near term, playing a role (although news from Europe no doubt contributed) in Monday's 6%-plus selloff in U.S. equity markets, claims this will fundamentally change the U.S. economy are an overstatement in our view. Here are a few ironies to highlight why credit ratings agencies' opinions shouldn't weigh too heavily on your mind.S&P, Moody's and Fitch have far from sterling track records. Here are three of their greatest hits for a refresher:
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