On today’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Wealth Advisor Kevin Rex to discuss Fitch Ratings’ downgrade of U.S. debt from AAA to AA+. Fitch warned that the “rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance.”

Kevin and Chris agree that this downgrade has been a long time coming and could hopefully bring about some reform. Chris says the only way to bring the rating back up is for the government to become more fiscally responsible and pay off their debt. However, so far, the government has been ignoring their quickly growing debt- an unsustainable path that could have powerful repercussions for Americans. 

To protect yourself in these uncertain times, Kevin and Chris suggest diversifying your portfolio with investments that generate enough cash flow to make the risk worth it. They also encourage listeners to consider investing in tangible assets like real estate and gold, as they have proven to be more resilient than other assets like stocks and bonds. 

Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.