Investors are frustrated. After the downgrade of the U.S. government’s debt rating, many are bracing for their portfolios to take a lasting hit.
Yet there’s also a sense that the ratings cut by Standard & Poor’s could spur Congress to take the painful long-term steps needed to confront the government’s debt burden, and strengthen the economy. Getting to that point, however, will require patience.
Matt Moscardi, a 32-year-old researcher with a Boston financial services company, says he’s glad S&P downgraded the debt rating Friday night.
He concedes his investments “might get killed in the short-term.” But he believes our fiscal policy is in disarray, and needs fixing.
The Dow Jones industrial average fell more than 250 points after the opening bell, and at mid-morning was down 347 points.