U.S. is Being Downgraded

Hey everyone,

Some big headlines dropped over the weekend that you need to be aware of — and they could have ripple effects on your portfolio.

📉 First, Moody’s downgraded the US credit rating from AAA to Aa1.

The reason? Ballooning debt, rising interest costs, and non-stop political gridlock. Moody’s expects debt to climb to around 134% of GDP by 2035 — up from 98% just last year.

Frankly, I don’t think this has real impact as it is the last major agency to pull the plug on America’s “perfect credit” badge. But for most common investor, this could further shaken the public confidence.

🚨 Treasury Secretary Scott Bessent wasn’t too concerned though. He called Moody’s a “lagging indicator” and brushed it off as noise. But in the same breath, he warned that the US may slap tariffs back on some countries if they don’t “negotiate in good faith” before the 90-day pause expires in July.

Yes — the "Liberation Day" tariffs that were just paused might come roaring back. Bessent said other countries can expect a letter soon saying, “Here’s your rate.” Classic.

Meanwhile, 🇺🇸🤝🇨🇳 the US and China have agreed to a 90-day truce on tariffs. That’s why markets rallied last week — lower tariffs = less pressure on trade. But it’s a fragile peace.

And while that deal helped boost markets short term, the real-world impact is already showing…

🛒 Walmart said it will be raising prices on a whole bunch of items — including essentials like fruit, veg, and kids' car seats — because of higher import costs. Trump responded by saying Walmart should just “eat the tariffs.” 🤷‍♂️

So, what does all this mean for you?

The market’s juggling two things right now:

• A short-term relief rally from the tariff pause

• Long-term stress from fiscal instability and potential tariff snapbacks

💪 Invest with Pete Livestream: I will be sharing more about how to use OPTIONS to profit from the current market. Keep a lookout for the livestream.

And if you're investing in this environment, you need to be positioned right — and make sure you're using the right tools.

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Stay sharp. The next few weeks could get spicy — and there’s plenty of opportunity if you’re ready.

And if you want to dive deeper into business news, do check out:

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Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.