Debt Ceiling Perspective for Investors

Last week, Treasury Secretary Janet Yellen issued a warning to policymakers that the “X-date,” when the extraordinary measures may be exhausted and the U.S. may run out of cash, could come as soon as June 1. As the X-date approaches without a political consensus to raise the debt limit, many investors are wondering how a breach of the debt ceiling could impact their investments.

We believe a balanced asset allocation of global equity and fixed income investments combined with a long-term investment horizon are likely the best tools investors can use to help ride out short-term uncertainty, and invite you to read recent insights from our partners at Dimensional Fund Advisors, Mind Over Matter: Perspective for Investors on the US Debt Ceiling, which further addresses this question.


At Heritage, our investment management process incorporates:

  • A globally diversified allocation across public equities (U.S., developed international, and emerging markets), bonds, real assets, alternative investments and, where appropriate, private equity, credit, and real estate.
  • Ongoing monitoring of portfolios for adherence to client specific asset allocations with the flexibility to adjust if (1) something about a client’s financial plan changes or (2) we experience significant investment risks or opportunities in market conditions.

We encourage investors to look past the near-term uncertainty and volatility, instead focusing on the longer-term factors impacting the markets and economy, like interest rates, inflation, and corporate earnings. Watch and listen as Michael Waldron, Heritage Financial’s Director of Portfolio Management, digs into the recent economic news making headlines and breaks down which data points matter for your investments, and which ones are noise that you can largely ignore. 


Learn more about our disciplined investment management process on these new web pages!

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The Debt Ceiling Distraction