[What to Buy and What to Run Away From] After the Debt Ceiling Drama

Evaluating the repercussions of the debt ceiling drama on the stock market. Picks from the Editor SPONSORED (Newsletter Continues Below) Sponsored [Protect Your Wealth from Inflation - Your Survival Guide]( Inflation is a silent killer of your wealth. You may be losing more money than you realize, and it could only get worse. Don't wait until it's too late to take action. [Go HERE To Learn How to Protect Yourself from Infl]( By clicking the link you are subscribing to The Investors News Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( Sorting Through the Fallout of the Debt Ceiling Drama in Stock Market  Hi Traders,  Here's a gentle reminder that our eagerly awaited Summer Market Summit continues today! The event is live from 9 AM to 5 PM, featuring a lineup of 8 unique speakers every day until Thursday. Make sure you don't miss out! [There's still time to join in! Join us right here!]( And just when we thought we'd weathered the storm of the debt ceiling crisis, we're faced with the aftermath. Now that the bill has been signed, it's a whole new ballgame and savvy investors know that they need to tread carefully. The landscape is rife with both tantalizing opportunities and hidden traps, particularly with an impending deluge of Treasurys, according to market experts. Paul Gambles of MBMG Family Office Group posits that in the immediate wake of the debt ceiling resolution, there's likely to be a swift surge of "risk assets and risk currencies." But don't get too comfy. It's a complex game. He makes an intriguing point that traditional diversification strategies might be meaningless in today's cross-asset correlation climate. Makes you think, doesn't it? Gambles gives a tip of the hat to the U.S. Federal Reserve and Treasury Department, for what he terms a history of systemic blunders, culminating in the recent debt ceiling drama. He places some blame on the aggressive asset purchase programs post-pandemic, which he believes have kept inflation on a steady boil. His two cents? Risk assets might be walking on thin ice in the near term. Now, let's talk about U.S. Treasurys. You better be ready for a wild tango because Gambles predicts some serious volatility on the horizon. According to a report from Citi, we could see a hefty $400 billion surge in U.S. Treasury bill issuance soon. You know what they say - there's no such thing as a free lunch. This surge in 'risk-free' high-yielding Treasurys might effectively tighten financial conditions and lead to a less than stellar performance in other markets for a while. But it's not all doom and gloom. Gambles seems to think that gold miners and long-duration Treasurys could come out smelling like roses. And he throws a nod to the Japanese yen. His rationale? They provide portfolio insurance, especially if you're skeptical about U.S. policymakers' ability to engineer a soft landing. If you're not feeling quite so confident, Gambles suggests looking into gold miners and zero coupon 25-year Treasurys. But wait, there's more. Citi has thrown its hat into the ring, suggesting non-U.S. debt, particularly high-yielding, investment-grade emerging market bonds, as potentially lucrative options. Interestingly, Citi also highlights potential challenges for U.S. banks. A shift from bank deposits to U.S. Treasurys might not spell disaster, but it could ratchet up the systemic risk. And with regional bank shares enjoying a 4.8% rally this week, it's worth being extra cautious of those banks with a high percentage of commercial real estate loans in their portfolios. Small and mid-cap stocks may also face some turbulence, given their linkage to regional bank performance. However, Citi suggests they could bounce back as economic conditions stabilize. The analysts there propose that it's the quality small-cap value shares that may look enticing right now for those with a longer-term perspective. By 2024, when the Fed shifts gears, Citi also anticipates a boost in small-cap growth shares, led by non-cyclical health care and technology firms. The takeaway? Bearish investors sitting on a pile of money on the sidelines may want to start thinking about how to put that cash to work.  Keep on keeping up!  John @ Traders on Trend  (In the next article: Want to learn about a stealth strategy that can make you rich? Find out below! 👇) Sponsored [Build Wealth 10x Faster By Doing This]( As you know, the stock market has been volatile lately, and there's a lot of uncertainty in the air. But we want to assure you that this is not the time to panic. In fact, it's the time to be buying stocks.[Go HERE to Get Their Names And Ticker Symbols]( By clicking the link you are subscribing to the Summa Money Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( Check the Free Presentation Today ☝ SPONSORED Discover the Investing Strategy that Can Make Motivated Investors Wealthy  Once upon a time, your humble narrator splashed out a pretty penny on an online course that promised to turn me into an online millionaire. Picture the scene: I gather up my gang, we all chip in, and suddenly we're on the path to potential riches together. Comrades in commerce, right? However, towards the end of our journey, the course coach started discussing these so-called "energy suckers." We're talking about individuals who lack the spark, the tenacity, to not only succeed but also to live life to the fullest and give back to society. And boy, did I get a masterclass in draining energy trying to keep everyone's spirits up. It felt like running a marathon with a herd of sloths. That's when I understood our mentor's advice to focus on helping ourselves and those who could keep up, rather than wasting time on those unwilling to strive for success. Over the years, I've moved away from trying to please high-stakes traders who seek quick returns and adrenaline spikes. I now work with those who appreciate steady, above-average growth and value strategies that protect their capital from significant losses. No extreme sport vibe needed. Now, have you ever experienced a moment of profound revelation? A sudden shift in perspective? Well, I had one when I considered traditional financial strategies like Buy-And-Hold, Diversification, 60/40 Portfolio, and Dividend-Based. They didn't quite resonate with me. I had a few questions. Why keep an asset that's plummeting in value? Sure, it may recover someday, but that "someday" could be an eternity away. Why mix and match assets hoping to create a balanced portfolio, without cutting the deadweights? And why assume holding more bonds than stocks would limit losses, when the bond market could collapse with rising interest rates?  (article continues below) Sponsored [How He Bagged One Of The Top Trading Records…]( A reclusive millionaire has been quietly racking up winning trade after winning trade. Despite avoiding most headlines, he’s become one of the most successful traders around - over the last 8 years, he’s banked a 97% win rate. How does he do it? He sat down for a rare interview where he revealed it all.[Click HERE to see how he’s done it…]( [Privacy Policy/Disclosures]( SPONSORED  🔼 Pay attention, this is worth your time! ☝  (article continues)  A common argument is that a good financial advisor can prevent these pitfalls. And I agree. But only if they are bound by a fiduciary duty, actively manage risks, and discard the potentially dangerous buy-and-hold strategy. Without these skills, you might just end up paying a hefty fee for undermanaged assets. And let me tell you, folks, that's not the dream. I learned this early in my career. My first love in assets was a harsh mistress, indifferent to my affection. Even after hours of research, even after pouring my entire account balance into it, it broke my heart and my bank account when it tanked. However, it was a valuable lesson. And, blessed with youth and patience, I weathered the storm and became a smarter investor, waving goodbye to the buy-and-hold strategy. Then came my second revelation: Don't cling to falling assets. The financial industry is riddled with misconceptions, and this was a significant one. Now, this might make me sound like a rebel, but I don't believe in owning assets that are declining in value. If an asset reverses its trend after a nice run, I'd rather accept a small loss than watch my wealth diminish due to stubborn adherence to a faulty strategy. But, how to convey this innovative approach in a concise and clear manner? And so, after much brainstorming, my team and I coined a term for our investing style – Asset Revesting. It's the practice of divesting from a falling asset and reinvesting in a rising one. Pretty straightforward, right? Asset Revesting is a smart and practical approach to investing. It focuses on holding assets rising in value, selling those declining, has robust risk management rules, and appreciates the value of cash when other assets are falling. And while it's a new term, some of you may have already been practising Asset Revesting unknowingly. The journey to retirement is smoother and safer if you're an Asset Revester. Instead of watching your portfolio crumble under unexpected sell-offs, you'll be cash-safe and possibly even profit from falling prices. Let's not sugarcoat things. Yes, there will be trades that fail. But, every single trade will have protective stops and profit targets to manage risk. And yes, there's always risk involved in trading and investing, but there's a big difference between giving a position an inch and a mile. 2022 was a challenging year for many retirees, as the bond market collapsed, affecting countless people. The aftermath was a sharp decrease in wealth and a long wait for recovery. But imagine if you could've rotated your capital into the best asset at any given time during such a crisis. That's the power of Asset Revesting. By being an Asset Revester, you're not just investing; you're investing smartly and securely. Now, that's a strategy worth considering.  Disclaimer:  The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.  Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.  Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.  Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. 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