So Fitch downgraded the US creditworthiness and everyone is freaking. Washington is furious and spitting anger all around. Biden and Yellen are commenting that this is outdated, politically motivated, and the US avoided default months ago. And stock market is selling like crazy in another kneejerk reaction.
Not that I am getting anxious about the market selling today. It was a needed selloff as we were seeing markets overheating again. In fact, we should see at least 10% decline which, personally, I do not need myself right now but it would be very healthy.
Now the US debt is rated AA+ instead of AAA. Do we deserve it? Most likely yes. The circus we all witnessed a few months ago when Republicans and Democrats staged their pitiful standoff about whether we should send the country further into debt or go bankrupt was disgusting. But will the rating downgrade change anything? Of course not. The politicians will keep spending as they were before. It is not their money and they need to bribe their donors and voters somehow. To ones, they provide tax cuts, to others they promise more welfare checks. And promises cost nothing.
But we have already heard that this will do nothing, DC will not change, and it will be all forgotten, probably as soon as tomorrow. I just do not understand why investors are dumping shares they were expensively buying just a day ago. Yes, yesterday you could buy shares of Apple (AAPL) for $195 and some change and today everyone is selling it for $192 and some change. The rest of the market and stocks follow the same suit.
In the meantime, enjoy cheaper prices, let others freak-out and wait for our government to do the exact same thing they kept doing for decades – spending.
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