Two Ways: White House Shrugs Off Ratings Cut Rumors
Strengthen your portfolio in good times and bad.
White House Secretary Robert Gibbs was asked at his daily press briefing to clarify a statement in which he said that a change in the US' AAA credit rating wouldn't concern President Barack Obama.
"I don't believe they will be cut," he said flatly.
Gibbs' answer comes a day after Standard & Poor's lowered its outlook on the United Kingdom's AAA rating from "stable" to "negative." The agency affirmed Britain's AAA long-term rating and A1+ short term rating, but said that, "even assuming additional fiscal tightening, the net general government debt burden could approach 100% of GDP and remain near that level in the medium near term."
Meanwhile, Moody's Investor Services said last night that it was comfortable with its AAA sovereign rating of the US; however, it did say that the rating was not guaranteed forever.
For more, see Professor Kevin Depew's Five Things.
From the Bull Pen: International base metal plays could still see some upside. Bulls playing Freeport McMoRan (FCX) may want to keep in mind the $47 support level. A tight sell stop can be set below that level.
From the Bear Cave: One must expect that if the Plunge Protection team would protect stocks, it would certainly protect the country's credit rating. Nonetheless the real story can't be hid from the currency markets. In the near term, the selling pressure on the dollar is likely to ease, but bears can reload via the bearish dollar ETF (UDN) at a later time.
We hope it was a great week, Minyans. Now it's time to get the grill fired up. Have an excellent weekend!
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