The clock is ticking for U.S. lawmakers as they try to strike a deal before June 1 to raise the country’s debt ceiling.
The American debt ceiling now sits at $31.24 trillion, but if a deal to raise the debt ceiling is finalized by June 1, the Treasury will run out of money and the country will default on its loans.
Over the weekend, the Republics and Democrats came to a tentative deal to raise the debt ceiling, but nothing has been finalized.
So, what does this mean for investors here in Saskatchewan and Canada in the U.S. defaults on its loans? Aaron Ruston of Purposed Financial explains.
"As an investor, really what it could do is it shakes the confidence in the U.S. marketplace and the U.S. markets are really the cornerstone to a lot of the investing that goes on around the world," Ruston said.
This isn’t the first time that the United States has come up against the debt ceiling. Ruston added that, in the past, when deals were struck the marketplace was initially volatile but will rebound.
As for what you should do with your investments, Ruston said his best advice is to stay put.
"I wouldn't worry about things. I would say stay the course if you're in solid, proven investments, understanding the money managers inside your portfolios are constantly buying and selling as well," he said.
Ruston added that this is just another hurdle along with rising inflation and interest rates.