Wednesday, 27 July 2011

The Effect of A US Downgrade On Stocks

For those of you trying to figure out what the effect of a US debt downgrade would mean for stocks, here is a calculation from Contrarian Musings showing that a debt down grade would lead to a 6.5% drop in US stocks. Intrade Prediction Markets indicates that there is currently a 60% chance that Standard and Poor's will downgrade US debt from its current triple A rating.

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