S&P Downgrades U.S. Debt; Impact on the Investment Outlook

Friday evening, August 6, Standard & Poor’s announced a controversial removal of its long-standing AAA imprimatur on U.S. Treasury bonds. S&P’s reason for the slight downgrade to AA+ is that they see no evidence that our political process can reverse the growth of government debt in relation to either government revenues or the nation’s private sector activity. Both the deficit and the nation’s debt burden appear out of control.

In the following memo we offer some insights into what is really going on, as well as a summary of FAI’s investment approach to prospering in this new environment.

To read the full text of this memo, please click the link below.