U.S. Debt Downgrade

In light of the recent news that Standard & Poor’s has issued a downgrade of U.S. debt, we want to assure you that we are continually reading and researching what is going on. While we think there is still a large amount of uncertainty out there, the downgrade from AAA to AA+ has never happened before. Therefore, there is no time in history to look back to.

We do not recommend any selling of your current portfolios - Richmond Brothers’ clients have well diversified portfolios with several holdings that do not move on a day to day basis with the markets. However, this does not mean that there will not be any movement in the portfolios; portfolios are diversified for exactly this type of situation to help reduce risk.

We are paying attention to what is going on and we will act if we think there is a chance to avoid losses or a chance to buy certain assets classes as well. We hope this continues to give you some background on what we are and/or will be doing as a result of “current affairs.”

As always, if you have any additional questions, please contact us.