The U.S. and the world economy are currently at the brink of a crisis, and it is all because of America’s federal debt ceiling. This is because, if Congress does not raise the ceiling to allow the government to borrow what it needs, the impacts of an U.S. default could be catastrophic.
But what are the chances the debt ceiling will not be raised? While it is unprecedented, many investors remain concerned about the possibility. To learn more about the likelihood of the U.S. defaulting, Horsesmouth recently spoke with Terry Sawchuk, founder and chairman of Sawchuk Wealth, for insight.
Sawchuk stands firm in his belief that it is truly inconceivable that Washington will allow the U.S. to default. “They’re going to extend the debt ceiling,” he says. Sawchuk even predicts that there is “zero chance,” that a default will occur, explaining that it is all just political theater but the stakes are too high to leave it unresolved.
However, even with the extreme unlikelihood that the debt ceiling does not get raised, it is a reminder to investors to have a portfolio that is prepared to face any type of economic disaster.
Any information discussed in this article is for educational purposes only. It is not meant to be any kind of recommendation or financial advice. The information contained in this video is intended for informational purposes only. Any opinions are those of Terry Sawchuk and not necessarily those of JW Cole Financial, Inc. or JW Cole Advisors, Inc.
Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Sawchuk Wealth and JWC/JWCA are unaffiliated entities.