It's almost impossible to trade on a US default - so here's what investors should do instead, according to Bankrate's senior economic analyst
Investors would be ill-advised to make bets on a potential US default, according to Bankrate senior economic analyst Mark Hamrick.
"Ultimately, the problem with suggesting that someone trade around this or make investment decisions that are unique to this experience requires them to do something that's almost impossible, and that is they have to be right twice with the timing," Hamrick said."Investors have to be right on the timing of, essentially, getting out of the market or reducing exposure to certain assets, including equities, then they have to be right on the timing of when to get back in.
He pointed to the 2008 financial crisis as another time when the economy was on the edge of a cliff, and how many investors got burned trying to time trades around the turmoil. Those who got out at the time struggled with making the right bet on when to re-enter the market.
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