Approaching Debt Ceiling Deadline Sparks Stock Market Fears

By: Anthony Sabella Email
By: Anthony Sabella Email

Another closing bell and another day closer to reaching the debt ceiling. With the first ever government default now a real possibility, Wall Street is keeping a close eye on Washington.

But what would a stock market downturn mean for stock holders in Mid-Michigan? Financial planner John Bush says it varies from person to person.

First, the good news. Bush says those relatively early in their careers will most likely be fine and, in fact, should take advantage of a down market.

"If the market does go down, you are able to buy more stock and mutual funds at a lower price," said Bush.

On the other hand, if you're closer to retirement, you should make sure your investments are bonds and other markets. That should lessen the impact.

"You've got to spread your risk out," said Bush. "You don't want to put all your money into that one basket."

But Bush says hitting the debt ceiling for the first time in history is unlikely and if history proves true, the market should respond particularly well after the fact. In the meantime, investors will be riding out the shutdown.

"The good news is, it's always been short term," said Bush.

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