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S&P Downgrade- What it means for Investors?


Today's Yahoo Finance talks about the 7 Common Mistakes that Investors Make.

The last week has been very turbulent, with markets going down after the debt troubles in USA and Europe. Then at the end of the week, S&P downgraded the US government securities from triple A to AA+.

This basically makes US government securities, one of the safest in the world, more risky. It also makes it more expensive as investor will demand higher interest with higher risk.

In the short term, it could force the US treasury to increase interest rates while the US markets and unemployment are still mired in all sorts of trouble.

While the 7 mistakes that the Yahoo Finance article points out that we shouldn't pay too much attention to financial news, it doesn't mean that you should know it at all. Being able to filter out what is crux of the issue and what you should do as an investor is more important.

The last few days and most of the past few weeks, markets have been tumbling down. It's fascinating and scary at the same time. Start of a new government related debt crisis?

For this period, I would sit tight and wait for buying opportunity to go into the stock market for companies whose stock prices have fallen below their fair values. What are you looking to buy?


1. The US Credit downgrade

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The information contained in this blog is prepared from data believed to be correct and reliable at the time of publication of this report. The authors do not make any guarantee or representation as to the adequacy, accuracy, completeness, reliability of the information contained herein. Neither the authors or any affiliates or related persons shall be liable for any consequences (direct or indirect losses, loss of profits and damages) of any
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Shares and financial instruments illustrated in this blog can go down sharply or in certain instruments suffer total loss on the initial investments. Investors are advised to make their own judgment on the information provided and consult their own financial advisors or consultants as to the suitability of the products illustrated to their particular financial needs and objectives before acting on any information contained herein in this blog.