Another great article by our friends at Morningstar on another great tradition of ours, the frequent drama around the U.S. debt ceiling.
The key takeaways are:
- The debt ceiling is front-page news, but much of it will likely be political theater.
- The debt ceiling has been lifted 89 times since 1960. It's probably a good bet number 90 is coming soon.
- Short-term volatility is likely a short-term side effect of the debt ceiling debate.
- Advisors should keep clients focused on what they can control and invite them to ignore the rest. We have no control over politics, tax policy, the economy, or market returns. However, we do have control over setting goals, maintaining an asset allocation, controlling costs, and keeping our emotions in check.