What’s really driving the economy—and how should investors think about it? In this podcast, John & Sam exchange perspectives on current events that are impacting our economy and influencing investment strategies. Trading Perspectives is hosted by Oakworth Capital Bank's Chief Investment Officer, John Norris along with Sam Clement, Associate Managing Director.
*Oakworth Asset Management is a registered investment advisor. All advisory services, including investment management and financial planning, are offered through Oakworth Asset Management, LLC, which is owned by Oakworth Capital Bank, member FDIC, Equal Housing Lender. Investment products and services offered via Oakworth Asset Management, LLC are independent of the products and services offered by Oakworth Capital Bank and are NOT FDIC INSURED, NOT BANK GUARANTEED, and MAY LOSE VALUE. The information, opinions, comments, statements, views or recommendations expressed should not be considered professional, tax or legal advice; or as an offer to buy or sell or to make or consider any investment or course of action. https://www.oakworth.com/ tradingperspectives@oakworth.com📄 Disclosures: oakworth.com/policy-center Member FDIC. Equal Housing Lender. Investments may lose value and are not bank guarantee.
Aug 3, 2023
This week, the Fitch Rating organization downgraded U.S. Treasury debt from its highest rating of AAA to AA+. But what did it accomplish? Is the U.S. Treasury market no longer the world’s most liquid? Is the U.S. dollar no longer the world’s primary reserve currency? Did the U.S. financial system suddenly become more opaque? Is the U.S. Treasury in danger of defaulting on its debt? Or is the bigger issue Washington’s inefficiency in spending money that it will eventually have to repay? Further, does anyone really want the Congress to tighten the purse strings in a meaningful way?
In this week’s Trading Perspectives, Sam and John discuss the probable outcomes of Fitch’s downgrade and what it really means for the US. Perhaps Sam really isn’t as cynical as everyone says. Or maybe he is.