America's downgrade may serve as a wakeup call for its policymakers. It is an unambiguous and loud signal of the country's eroding economic strength and global standing. It renders urgent the need to regain the initiative through better economic policymaking and more coherent governance.
Mohamed El-Erian
Investors have few spare tires left. Think of the image of a car on a bumpy road to an uncertain destination that has already used up its spare tire. The cash reserves of people have been eaten up by the recent market volatility.
car people
Most people are under exposed to global assets, including foreign stocks, bonds and currencies.
people
The once-unthinkable loss of the AAA rating will constitute a further hit to already fragile business and consumer confidence.
business
For the next three years, we're going to see different economies work out different problems. For European economies, especially Greece, it would be through default.
work
strength
It is hard to imagine that, having downgraded the US, S
effort example
As a whole, investors should welcome attempts to safeguard the integrity of markets. You need very clear rules applied to markets.
rules
Investors should be cautiously positioned as the global economy and markets face major uncertainties. The downgrade will be a further headwind to growth and job creation in the U.S.
growth
Investors have to ask themselves two questions. How much can we grow our investments? And, can we afford our mistakes?
mistakes
Investors should invest on what they know. The biggest mistake is to invest on what they don't know.
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