May. 20 at 1:15 PM
Moodyβs just downgraded the U.S. credit rating β hereβs what that means for your portfolio β οΈ
π£
$36T debt bomb triggered the cut β echoing past moves by Fitch (2023) & S&P (2011)
π Bond market flashing warning signs: 10-year term premium turned positive, 30-year yield spikes
π§Ύ Trump-backed tax bill could add up to
$5.2T more debt by 2034
π Barclays sees less damage β but higher borrowing costs look inevitable
Hereβs how to play rising yields with ETFs π β from defensive bond ETFs like
$VGSH to low-volatility equity picks like
$SPLV. These bets seem better than
$SPY if volatility flares up.
https://www.zacks.com/stock/news/2474328/etf-strategies-to-follow-on-moodys-downgrade-of-us-debt?cid=sm-stocktwits-0-2474328-teaser&ADID=SYND_STOCKTWITS_TWEET_0_2474328_TEASER