OCR Text |
Show Thursday, July 28, 2011 What does debt ceiling debate mean for you? If you're like most Americans, the term "debt ceiling" probably didn't mean that much to you until recently. Now, of course, the debt ceiling debate is front-page news, day after day. As a citizen, you're no doubt hoping the situation is resolved in the best interests of the country. But as an investor, you may be especially concerned about what might happen to your holdings, and your overall investment strategy, if the debt ceiling is not increased by the Aug. 2 deadline. Before you consider how the situation may affect you, let's quickly review just what is meant by the term "debt ceiling" and what might happen if no agreement is reached. Essentially, the debt ceiling is the legal limit on borrowing by the federal government. If Congress doesn't increase the limit, borrowed funds wouldn't be available to pay bills, so the U.S. could be forced to default on its debt obligations, which would be unprecedented. No one can really predict what might happen if the debt ceiling isn't raised, but virtually everyone agrees that it would be an undesirable outcome. That's why Congress has, more or less routinely, always raised the debt ceiling in the past — in fact, it's been raised every year for the past 10 years. This year, however, political and philosophical differences between Congressional leaders and the current Administration have, thus far, blocked the lifting of the debt ceiling. Nonetheless, there's still time for Congress to take action before Aug. 2, which is the estimated date of when temporary actions to avoid default are exhausted. (The actual debt ceiling was reached in mid-May). And as an indi- Page 7 The Gunnison Valley Gazette vidual investor, here's what you can do: • Don't panic. It's hard to imagine that an agreement won't be reached to raise the debt ceiling, even if such a deal doesn't happen until the last minute. But even if the Aug. 2 deadline passes, the U.S. may still find ways to make payments on its debt for a while. So don't rush into investment decisions based on this scenario. • Overlook short-term results. Even if the U.S. finds ways to pay its debts after the Aug. 2 deadline, lenders — who don't like uncertainty — could become more concerned and start demanding higher interest rates on their investments in U.S. Treasury securities. As a result, market interest rates could rise across the board, leading to declines in bond and stock prices. Remember that the market can drop for any reason, and this would be no exception. While such a drop could well be sharp the resulting distress would likely jolt Congress into taking quick action on the debt ceiling. • Don't let debts and deficits drive your investment decisions. Even after the debt ceiling issue is resolved, concerns will exist about the country's debt and deficit issues. As an investor, you should make investment decisions based on your individual goals, risk tolerance and time horizon rather than the level of debt being incurred by the government. The debt ceiling story can certainly be unsettling — but it doesn't mean you should let the roof fall in on your investment strategy. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. YOU CAN'T CONTROL THE MARKET, BUT YOU CAN CONTROL YOUR DECISIONS. Sometimes the market reacts poorly to changes in the economy. But just because the market reacts doesn't mean you should. Still, if current events are making you feel uncertain about your finances, you should schedule a complimentary portfolio review. That way, you can help make sure you're in control of where you want to go and how you'll potentially get there. ThE Outdoor REport Summer fishing is heating up If you like to fish, pay attention — something is happening in Utah right now that hasn't happened for a long time. Record rain and snow, coupled with cold temperatures that lasted well into June, have pushed some of the best fishing in the state back this year. Typically, some of the best fishing happens in the spring. Not this year, though. Instead, a month that's typically one of the slowest to fish — August — should be one of the best. Drew Cushing, sport fisheries coordinator for the Division of Wildlife Resources, says reservoirs and lakes across Utah have plenty of water. And the cool water temperatures are perfect for all species of fish. "Years like this are rare," he says. "They just don't happen. "All of the stars are lining up," he says. "Anglers need to get out and take advantage of it. We're going to have a great late summer and fall bite." When you visit your favorite water to fish, plenty of oto fish should be waiting for you. "The water that rushed into the reservoirs a few weeks ago made the water cloudy, covered many of the shoreline areas and delayed spawning for a lot of the fish," he says. "Those conditions meant anglers couldn't get to or attract many of the fish. But the waiting game is over." Water levels have been high on rivers and streams oug ass across Utah this year. But the water levels are starting to go down. And that means you now have access to lots of hungry fish. Cushing says fall usually isn't the best time to fish rivers and streams because the water level is so low. "Not this year," he says. "The fish will be hungry, and the water levels will be good. Get out and take advantage of it." 528-5001 Hwy 89 Northeast of Gunnison Open Monday - Saturday The Outdoor Report is Sponsored by: SATTERWHITE The First Word and Last Name in Log Homes! LOG HOMES • CFO " Family. Experience. Quality. Think Satterwhite for Log Homes, Rough Lumber, Timbers, Animal Bedding and Firewood Call or visit your local financial advisor today. Darin K Frandsen into all the World Financial Advisor 446 South Mall Drive B-7 St George, UT 84790 435-627-2159 www.edwardjones.com • • • • — • • Edwardi o n TM MAKING SENSE OF INVESTING NOTICE OF PROPOSED TAX INCREASE Centerfield The City of Centerfield is proposing to increase its property tax revenue. - The Centerfield tax on a $125,000 residence would increase from $44.89 to $115.98, which is $71.09 per year. - The Centerfield tax on a $125,000 business would increase from $81.63 to $210.88 which is $129.25 per year. - If the proposed budget is approved, Centerfield would increase its property tax budgeted revenue by 158.17% above last year's property tax budgeted revenue excluding new growth. Elder Freddy Villanueva is serving in the Idaho Boise Mission and will be returning home next week. He is the son of Fortino and Reina Villanueva of Centerfield. into all the 'World Rasmussen Ace Hardware is sponsored by ACE Paints Sporting Goods Whirpool Appliances 528-7513 The helpful place. 435 South Main • Gunnison Centerfield property tax revenue from new growth and other sources will increase from $24,776 to $64,000. All concerned citizens are invited to a public hearing on the tax increase. PUBLIC HEARING Date/Time: 8/3/2011 6:00 p.m. Location: CENTERFIELD CITY HALL 130 South Main Centerfield, UT 84622 The Blake Donaldson Family • 1980 Blake, Karen, Rebecca, Lee K., and Jason To obtain more information regarding the tax increase, citizens may contact Centerfield at 435528-3296. Sponsored by HERMANSEN'S MILL 204 South 1st East • Gunnison 528-3136 Feeds • Grain Storage • Fertilizer Seeds • Farm Supplies • Chemicals |