[Altos Weekly Newsletter] The US Government Maxes Out it's $31.4 Trillion Credit Card...What Happens Now?

Hello Traders! We hope you find this weekly FREE newsletter filled with information that helps your trading day! Today we talk about the debt and how, despite it all, Wharton’s Jeremy Siegel sees the economy thriving! The Team at Altos Trading [Watch The Video Here]( VIDEO - NEW STRATEGY Wall Street’s Income Strategy for ANY Market Condition How does Wall Street stay ahead when the markets turn bearish? Simple. They switch strategies. And in this 30-minute video, a former pro will teach you one of their favorites. [Watch The Video Here ]( SPONSOR ⬆️ US NEWS and HOW IT EFFECTS THE MARKETS The US Government Maxes Out Its $31.4 Trillion Credit Card: How This Can Hurt You On January 19, the United States officially reached its $31.4 trillion debt ceiling, triggering a ticking time bomb toward a potentially "calamitous" debt default. In the absence of a political breakthrough in Congress, the Treasury will resort to "exceptional measures" to assure the government can pay its debts. According to Treasury Secretary Janet Yellen, the emergency measures are set to expire on June 5, raising concerns about a negative impact on Americans. Here are three potential consequences: Social support can be halted The President's economic advisers, the Council of Economic Advisers (CEA), have drawn a bleak picture of life following debt default. "Federal government payments that people rely on to make ends meet would be jeopardized," the CEA explains. "The essential responsibilities of the Federal government—including maintaining a national military, national parks, and numerous others—would be at risk.” "The public health system, which has allowed this country to respond to a global pandemic, would be unable to function efficiently." What does this mean for certain families? It means that the government may postpone payments to millions of Americans, such as Social Security, Medicare, and Medicaid, as well as veterans' benefits. Market upheaval History has a habit of repeating itself, which does not bode well for America's last-minute debt ceiling decision... or your assets. In 2011, Congress passed a debt-ceiling extension with only hours before the Treasury was set to default. Because of this close call, credit rating agency Standard & Poor's stripped the United States of its coveted AAA (excellent) rating, removing it from its list of lowest-risk countries. The agency blamed the rating on broken policymaking in Washington. Fearful investors reacted fast, and the stock market crashed. The S&P 500 index took nearly six months to recover. What is going on today is similar. The ensuing months of "exceptional measures" appear to be destined for a protracted, drawn-out political scuffle, with opposing Republicans using their votes on an extension as leverage to seek budget cuts. As things stand, another last-minute debt ceiling extension is likely. This could create havoc for the S&P 500 index, which fell 19% in 2022. Mortgage and credit card rates Credit card interest rates, as well as other interest-bearing loans such as mortgages and auto loans, are linked to the health of the US economy, which is in bad shape as a result of the debt default crisis. The Federal Reserve increased its main short-term interest rate by 0.25 percentage points earlier this month, bringing borrowing prices to their highest level since 2007. When the fed funds rate rises, so do the prime rate, which is the interest rate at which banks lend to customers with strong credit. Borrowers will have to pay higher interest rates on their credit card balances as a result. Mortgages for US families may also become more expensive. "These and other effects might spark a recession and credit market freeze," according to the CEA. A strategy to protect yourself With the United States' balance sheet in such peril, your 401(k) or IRA, as well as your retirement, could be jeopardized. You may try to make changes to your retirement funds to improve your protection, but there's a lesser-known option that could pay off big. A Gold IRA is a sort of individual retirement account that allows you to invest in actual forms of gold and other precious metals, such as coins, rather than stocks, mutual funds, and other typical assets. Unlike the US dollar, which has lost 98% of its purchasing value since 1971, gold's purchasing power has remained more steady over time. Choosing a Gold IRA allows you to diversify your portfolio while also stabilizing your finances. CLICK HERE ⬆️ ECONOMY NEWS Wharton’s Jeremy Siegel Sees the Economy and Markets Thriving Despite Fed Rate Hikes At the March meeting, Federal Reserve Chair Jerome Powell startled markets by hinting at a probable return to higher interest rate hikes. Wharton Professor Jeremey Siegel shared his opinions on the near-term rate projections, ahead of Powell's first day of House testimony. What Happened: The Fed will raise rates again in March, and whether it is 25 basis points or 50 basis points is irrelevant, Siegel said in his weekly column for WisdomTree Investments, where he is a senior investment adviser. He based his conclusion on recent solid data, such as the January jobs report, weekly jobless claims data, and output and GDP figures. Commodity indexes have also stabilized at low levels, indicating that they are unlikely to fall further, he said. According to Siegel, the M2 money supply steadied in December, contrary to projections for additional declines, the apartment list rental index increased in February, and the December Case-Shiller house price index did not decrease as much as projected. The extent of the March rate hike would be determined by Friday's employment data, which is widely projected to show an increase of 200,000 new jobs, according to Siegel. If the data indicates more employment growth than predicted, hardline Fed members may demand a 50 basis-point hike, he noted. Siegel believes that rate hikes will continue until job growth reaches zero or turns negative. He said that the tightness signaled by the more recent first claims data is too strong for a shift at this time. According to the economist, the market is pricing in four 25-basis-point rate increases through October. He predicted one 50-basis-point increase and two 25-basis-point increases. Although Siegel continues to believe that these hikes are unnecessary, he believes that, given the resiliency of economic statistics, the increase will not be as harmful as he feared in the fall. "I'm now more optimistic about the Fed raising rates since the economy appears to be holding up better than I expected," Siegel said. Given the economy's resiliency and productivity increases obtained through increased cost management, the economist believes that the consensus earnings predictions for the year could be cautious. The S&P is still trading at a P/E multiple of 19, but a fair equilibrium multiple for the market maybe 20 times earnings, according to him. As a result, valuations are not high, he added. "I am sticking to my call for a strong equity market with gains of 10-15% this year," Siegel stated. CLAIM YOUR SPOT TODAY One Trading Legend... Two PhD Software Engineers Three Years Of Testing & Refinement… The ONLY Trading System that can Find the Top-Performers in Just Minutes a Day. [CLICK HERE TO RESERVE YOUR SPOT FOR THIS THURSDAY (SPACE IS LIMITED)]( SPACE IS LIMITED - REGISTER TODAY ⬆️ Disclaimer: The Altos Trading Alert Newsletter is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. Subscribers to Altos Trading or any other persons who buy, sell or hold securities should do so with caution and consult with a broker or investment adviser before doing so. Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts. Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA Disclaimer: The Altos Trading Alert Newsletter is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. Subscribers to Altos Trading or any other persons who buy, sell or hold securities should do so with caution and consult with a broker or investment adviser before doing so. Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts. Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA [Unsubscribe]( | [Change Subscriber Options](