Debt Ceiling Update: 5/25/23

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Hello from Louisville, KY at the Advisor Group’s NXT Conference. Jeremiah Thompson and I have been here at this amazing three-day conference focusing on the future of the financial planning and wealth management industry.

We just came out of the final closing session with Chief Economist, Phil Blancato, of Ladenburg Thalmann Asset Management where he talked about the current economic environment and the economic outlook in the near future. One thing we want to highlight from that presentation that we have been getting a lot of questions on is the current debt ceiling debate going on in Congress.

The US is very close to reaching the limit of how much they are allowed to borrow to meet their expenses. If they do end up hitting the limit and can no longer borrow more money, many wonder what they will do. If they do end up reaching that limit before Congress passes a bill to increase the limit, it means that the US Treasury will have to figure out which bills and payments to prioritize and which won’t get paid. This understandably causes a lot of anxiety and uncertainty over what would happen.

I’d like to share some perspective recently shared by Phil Blancato, with which we agree. First, the raising of the debt ceiling has happened 78 times throughout history. 78 times we got close to running out of money and 78 times they successfully raised the limit to be able to meet our obligations. So this is now the 79th time. It’s been the same story over and over for 78 times. It’s like watching a movie that you’ve seen 78 times. If you watch it for a 79th time, you would expect the same ending.

And the majority of the time, when the country gets close to reaching the debt limit, Congress does not pass an increase to it right away. That is very rare. It almost always sparks a debate that doesn’t get resolved until the last minute within weeks or even days of the deadline. In addition, the stock market has historically been very volatile when these debt debates have taken place in the past but has also recovered quickly once the issue was resolved.

Of course, we can’t guarantee that what happened in the past will happen again but we do feel confident that the legislative and executive branches will get this worked out to increase the limit.

Even if this doesn’t happen by June 8th, the Treasury Department does have other tools and resources they can use to make the funds stretch a little further until it is resolved.

So we do not recommend that you take any action in your accounts as a reaction to the debt ceiling situation. Instead, we recommend that you leave your investments as they are designed to meet your long-term goals.

We hope you found this information helpful. Jeremiah and I have really benefited a lot from this conference and are excited to see how we can apply the knowledge we have gained into our work at Kramer Wealth Managers and to benefit our clients going forward.

Adrianna Rocha

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX
info@kramerwealth.com

Adrianna Rocha joined Kramer Wealth Managers in 2021.

Adrianna is responsible for client experiences and service. As part of the customer service team, she strives to help and provide top-notch service to our clients. As part of her role, she communicates with clients through videophone, schedules client meetings, prepares and processes forms, and gathers information for our advisors.

Adrianna Rocha graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017. Before she joined our team, she worked in the customer service industry for nearly a decade. She excels in human-to-human relations and takes pride in not only her own accomplishments, but her clients’ as well. Adrianna enjoys chatting about her slight obsession with dogs, houseplants, essential oils, and food: especially Mexican food! She is also a proud fur-mama to her beautiful Aussie-mixed pup, Ziva.

Adrianna is not registered with Osaic Wealth.

Adrianna Rocha

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX
info@kramerwealth.com

Since joining Kramer Wealth Managers in 2021, Adrianna Rocha has been a client service dynamo, ensuring every client interaction is seamless and delightful. She’s the go-to guru for all things client experience, handling everything from videophone chats to scheduling meetings and processing forms with a smile. Her goal? To make sure every client feels valued and well-cared-for.

Adrianna graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017 and brings nearly a decade of customer service experience to our team. She thrives on personal connections, celebrating both her achievements and those of our clients. When she’s not busy at work, you might find her indulging in her passions—dogs, houseplants, essential oils, and the tantalizing flavors of Mexican cuisine. Proud fur-mama to her adorable Aussie mix, Ziva. Adrianna brings a touch of warmth and enthusiasm to everything she does.

Q: What’s your favorite part of working with clients?

A:  I enjoy client service because it allows me to help people and make a positive impact. Using my listening skills to understand client needs and solve problems is satisfying. I love turning negative experiences positive and the daily variety of challenges.

Adrianna is not registered with Osaic Wealth.

Jack Morley

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
240-379-6909 FAX
info@kramerwealth.com

Jack Morley has been a vital part of the Kramer Wealth Managers team since 2010, starting with various projects and officially joining full-time in 2013. As our go-to Account Service Specialist, Jack is the friendly face and reliable voice who ensures a smooth client experience. He’s the linchpin in client communications, handling account maintenance and bridging connections between clients and our advisory team.

A 1998 graduate of Gallaudet University with a BA in Psychology, Jack brings a wealth of customer service experience from retail and human services. His handyman skills are a bonus, making him the resident problem-solver and DIY enthusiast. Outside the office, Jack enjoys long walks with his dog Bailey.

Married for 25 years to his wonderful wife, Monica, Jack is also the devoted dad to two dynamic daughters who keep him on his toes. When he’s not walking Bailey—he’s likely tinkering on a new project or spending quality time with his family.

Q: What’s your favorite part of working with clients?

A:  I enjoy assisting clients in maintaining their accounts and ensuring there is a smooth transition in between changes being made within their accounts.

Jack is not registered with Osaic Wealth.