“The debt ceiling and debt downgrade circuses in Washington are a sideshow relative to the global economic slowdown unfolding,” remarked James Dailey of TEAM Financial Managers in the note. “The slowdown and the risks of a transition to a new recession in 2012 remain our analytical focus.”
“We think the budget battle in Washington and the recent S&P downgrade is just the beginning,” said Jim Elder of ElderAdo Financial. “Even though U.S. corporations are showing strong earnings, we see the U.S. government struggling as it deals with numerous problems. We are in another recession, but this time it’s a government recession, not a corporate recession.”
For the month, 60% of responding advisors made changes in their portfolio allocations. Of the advisors, 16% put more into fixed income while 24% allocated more into a higher cash position.
Max Chen contributed to this article.
Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.