Navigating the Debt Ceiling Debate: Insights from Experts and Market Indicators.

The stock market has been relatively calm despite the looming debt ceiling crisis, but investors should still hedge their bets. Even if the crisis is resolved without much disruption, the focus of attention is likely to shift back to the Federal Reserve, which faces a trifecta of risks including the potential for economic drag from the more restrictive fiscal policy, the lagged effects of the Fed's restrictive monetary policy, and the possibility of renewed flare-ups in the banking system. Global tensions remain high, and the coronavirus continues to exact a harsh toll in death and suffering. To prepare for all eventualities, investors should diversify and hold stocks and bonds from the entire world through broad low-cost index funds.