Advisers Tell Investors Not To Sell as Debt Deadline Nears
By Elizabeth Ody and Margaret CollinsAs nerve-racking as he finds the debt-ceiling negotiations, Chris Rainbolt, 36, hasn’t shifted his portfolio in anticipation of a possible U.S. government default.
“It’s kind of like you’re standing on a cliff, and as long as you don’t fall off the cliff you’re fine,” said Rainbolt, who lives in Dallas and works in real estate. “If you do fall off the cliff, it doesn’t matter what you do.”
Rainbolt is among investors whose financial advisers are telling them not to sell their stocks or bonds as time runs out for Congress to pass a deal to raise the U.S. debt ceiling. Treasury Secretary Timothy F. Geithner has said the U.S. will exhaust options for paying all of its bills on Aug. 2.
Comment: It wouldn't be the first time in history when the advent of a great calamitous event has been expected with utmost tranquility.