Read time: 2 minutes
As the debt ceiling debate continues on Capitol Hill, we look back on what’s happened in the past when we came close to defaulting on the nation’s debts.
This 2-minute video gives a historical perspective on increases in the U.S. debt limit and how the financial markets reacted the last three times we’ve come close to the deadline. The market reactions were inconsistent across time and asset classes, highlighting the difficulty of trying to time the market.
Video Length: 1:44
Notes:
- All investing is subject to risk, including the possible loss of the money you invest. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account.
- There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Diversification does not ensure a profit or protect against a loss.
- Investments in bonds are subject to interest rate, credit, and inflation risk. U.S. government backing of Treasury or agency securities applies only to the underlying securities and does not prevent share-price fluctuations. Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest.