Investors unmoved by threat of US default

25 October 2013

  • Halifax Share Dealing reports that UK investors believe a technical default in the US would only have a short term impact on markets

The majority of investors would not change the structure of their portfolios in the event of a US default and believe it would only have a short-term impact on the markets, according to the latest Halifax Share Dealing Market Tracker.

Despite speculation over the consequences for global markets as a result of a technical default in the US earlier in the month; almost three quarters (74%) of UK investors do not believe the impact would warrant a change in their portfolio. More than 60% think it would only have a short-term impact with just 27% predicting it would have a long-term impact.

Damian Stansfield, managing director of Halifax Share Dealing, says:
"The possibility of technical default has receded again, but the issue will return should US politicians not reach an agreement over the debt ceiling in early 2014. While we don't know what the exact impact of a technical default would be, it could include a decline in the US dollar and a decline in global GDP – both of which would have consequences for global markets."

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