The debt ceiling crisis is coming down to the wire. We’re possibly already out of time to prevent default and just don’t know it.
UBS estimates a short default could create a 20% bear market, and a one-month default could lead to a 44% crash.
Even without a debt default, we’re likely facing a 1.5% to 4% GDP recession later this year that the market is not at all prepared for.
These 10 A-rated dividend aristocrats have the strongest balance sheets of any aristocrat, an A+ stable rating with 0.52% 30-year bankruptcy risk.
They have a 40-year dividend growth streak and risk management in the top 25% of all global companies.
Combined with two hedging ETFs, they create a 4% yielding Ultra Sleep-Well-At-Night, or SWAN, aristocrat portfolio that historically delivers market-like returns but with 75% smaller peak declines in bear markets.
The average bear market decline is 8%, falling just 18% in the Great Recession.
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