Why the Debt Ceiling Crisis is Good News for You

by Andrew Zatlin May 26, 2023 1:00 pm ET

Recent market turbulence may have you ready to keep your money on the sidelines.

But that might be the worst thing you could do.

During times like these, incredible opportunities present themselves...

And you can either take advantage of them, or be left wondering how you missed out.

For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.

Why the Debt Ceiling Crisis is Good News for You

They're the words hanging on everyone's lips these days: the debt ceiling.

But what exactly does it mean? Why is it so important? Is it worth panicking over?

I'll answer those questions...

And I'll explain how we can use what's going on to get positioned for potential profits.

What's the Debt Ceiling?

The U.S. government lives on debt. It borrows more money than it earns through taxes. However, there's a limit to how much it can borrow...

And that limit is referred to as the debt ceiling.

Traditionally, Congress holds the power to raise or lower this ceiling. And right now, therein lies the problem. Let me explain...

A Capital Divided

When Congress and the White House are controlled by the same party – in recent years, the Democrats have had control – things run pretty smoothly. There are few fights or delays when it comes to making decisions.

But right now, Republicans control Congress while Democrats control the White House. And as a result, coming to an agreement on anything, including the debt ceiling, hasn't been easy. Discussions have been fraught with problems.

This clash is what has so many people worried that an agreement on the debt ceiling won't happen by the June 1 deadline...

And if an agreement isn't reached, the U.S. government will likely default on its roughly $30 trillion of debt. If that were to happen, that wouldn't be good.

I'm not worried, though, and neither should you be. Here's why...

A 'Nothing Burger'

Over the past 40 years, debt ceiling negotiations have happened 78 times.

Granted, during these talks, the market can be turbulent. In case it wasn't obvious, markets don't like recklessness and uncertainty.

But this turmoil will pass. And a debt ceiling agreement will be made. In fact, it might already have been reached!

Washington is famous for slow rolling a decision in an effort to save political face or gain points.

Never let an opportunity to play politics go to waste – that's the Washington, D.C. way, right?

Our Opportunity

The truth is, whenever there's a standoff in Washington, the market usually overreacts. Then the standoff ends and the market jumps back up.

What's this mean for you? A buying opportunity!

If you remember, I stood by my "sell in May, go away" pledge for a while. And while that's been the case for most of this month, I'm making a slight adjustment in light of recent events.

Load up now while the market is at a discount. Then get ready to sell when it shoots up following an accord in Washington.

As for which specific investment to make, make sure you're subscribed to my "Pro" content, where I'll reveal a company whose stock could come close to doubling if the market rallies.

And get ready for next week, when I'll share another opportunity that most investors aren't going to take advantage of, but you'd better believe we will.

In the meantime, Happy Memorial Day. We're in it to win it. Zatlin out.