This week’s theme on the Retirement Quick Tips Podcast is: Debt Ceiling 2023: What It Means For You

Today, I’m talking more in depth about the most likely scenario with the debt limit debacle, and it’s a good day for this, because June 1st - the day this show is published and probably the day you’re listening, is the deadline. If no agreement is reached by today, then there will likely be some turmoil and consequences for the markets and the economy. The extent of those consequences depend on how long it takes to reach some sort of deal. 

Yesterday, I said the most likely scenario is the deadline comes and goes but there will be a deal after the deadline. 

If you look back to 2011, it took a few months to reach a deal after negotiations started in May. A deal was finally reached in August, but the damage was done. Stocks dropped about 15% during that time, and finally recovered a few months later. 

Bond prices and precious metals should hold up better if we have a repeat of 2011 with a deal coming sometime after the deadline. 

I hope I’m wrong and that a deal is struck by today, but if not, expect at least a few months of turmoil in the markets and in your investment portfolio…possibly longer if the debt ceiling becomes the straw that breaks the US economy’s back and sends us into a recession…I’ll talk more about that tomorrow. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.   

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