USA Credit Downgraded by S&P!

david —  August 6, 2011

Rating agency Standard & Poor’s says it has downgraded the U.S. credit rating to AA+ from its top rank of AAA. No one knows exactly how the markets will be impacted by this or for how long. However, it is certainly a major event. A brief and informative summary can be found at the following link:

In any event, we have been selling stock in our client accounts as stop loss signals have triggered recently. Our managed equity accounts are 65% cash while our income accounts are 40% cash. We have also advised sales in our newsletter. The market sometimes goes up when anticipated news comes to fruition. However, a big sell off is not out of question in the stock market on Monday so I will sleep better this weekend having taken these actions and hope you will as well. We see how things shake out and go from there.