A Lot Could Happen...
That’s if, in fact, we do not get a deal. But we very likely will. The Democrats may be able to pass a bill raising or suspending the debt ceiling without the Republicans. Some Republicans may join the Democrats to avoid a shutdown or default. There are multiple roads to a successful resolution here. For the moment, then, this is a situation to watch but not to panic about. The risks are real, but certainly not immediate, and even in the absence of a deal not as large as many fear.
I suspect we will be talking about this again in more detail, as we get closer to the drop-dead date—but we are not there yet. As with so many things, lots of things could happen, but most of them will not.
Remain calm and carry on.
Brad McMillan is the chief investment officer at Commonwealth Financial Network.