Congressional leaders yesterday (Tuesday) finally settled on a debt deal, but the ineffective compromise is not enough to prevent a blow to the U.S. markets and the dollar - meaning it's time to preserve your wealth with large-cap dividend stocks.
While the coming period of market uncertainty could be a great opportunity for rational investors to explore newly created investing options, there must also be a focus on wealth preservation.
To that end, Money Morning Contributing Editor Shah Gilani joined FoxBusiness' "Varney & Co." programTuesday to explain why the debt-ceiling deal's weakness makes defensive investing with large-cap dividend stocks imperative.
"The sideshow may be over, but there's no agreement on paring down our debt," said Gilani. "The problem isn't going to be fixed by just cutting spending."
Indeed, investors remain exposed to the fragile U.S. economy and volatile financial markets.
"To be safe in these uncertain times I like a simple well-rounded and ‘tight' portfolio," said Gilani. "I like the new stuff, but in times like these I also like to be defensive - better safe than sorry."