Fitch downgraded US government debt, correction move coming?
Late on Tuesday in the after hours, ratings agency Fitch downgraded the US government's top credit rating to AA+ from AAA, citing an expected fiscal deterioration over the next three years as well as a high and growing general government debt burden.
This comes two months after Democratic President Joe Biden and the Republican-controlled House of Representatives reached a debt ceiling agreement to lift the government's US$31.4 trillion debt ceiling.
US treasuries are down
As of this morning 9am (Singapore time), the US 2 year has ticked down to 4.88% from Monday's high of 4.91%, while the US 10 year is now at 4.01%, down from yesterday's high of 4.05%.
E-mini S&P Futures
The futures market is down by 0.31% but has made a green candle so far.
Is this a correction move?
Could this be the potential correction move that shakes out the weak hands before reaching all time high of 4,818 made back on Jan 4, 2022?
I have marked out potential support levels that should see some buying points for those who missed the bus.
A pullback is less than 10%, and between 10% to 20% would be a market correction, while a 20% would imply a new bear market.
Investors should take note that the last time US government debt was downgraded on Aug 5, 2011, the market fell 20% and provided investors opportunities to buy stocks on the cheap before the market made a reversal in a short span of time. Of course that cost S&P president Deven Sharma his job just a few weeks later!
When S&P downgraded US government debt on Aug 5, 2011
I would use any weakness in the US markets to add to my collection of magnificent seven stocks like Apple, Microsoft, Meta, Alphabet & Amazon!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Truth is uptrend likely comes back next week and 99% of the shorts here go missing. Same goes for Ramandeep. He shorted at $150 and $160 and hasn't recovered.
Price target now $115 by the end of the year. It's going to get clipped good as their sales and disastrous video goggles dry up.
Bottom line: iPhone revenue miss or services beat, it all equals to better than expected revenue growth for the quarter. Its all good! Go Apple longs! You will not regret it!
AAPL will be higher tomorrow when people realise that they made money in spite of a rough economy and it should be smooth sailing from here!
Load up boys I would say the best is yet to come but I will say this stock is no where near through.
Fitch Ratings recently downgraded the United States' long-term foreign currency issuer default rating from AAA to AA+.
It is too early to say whether the downgrade will lead to a correction in the stock market.
The Fitch downgrade is a sign that the US's creditworthiness is being seen as less secure.
Fitch cited a number of factors for the downgrade, including the country's high debt levels.
It's time Apple gives more of a divvy to shareholders, investors....
Great company that’s cruising at the moment
This stock is annoying it never goes down.
AAPL is now losing customers and 1I 1phopne sales