Investors should not be too worried if the United States reaches the debt ceiling deadline without a deal being reached on Capitol Hill, says Tom Hutchinson, senior financial editor of the High Income Factor newsletter.
"I wouldn't be too concerned in the short term . . . The market has an upward bias. Frankly, if this current rift causes a selloff, it's a much overdue opportunity and a great chance to get in," Hutchinson told "The Steve Malzberg Show" on Newsmax TV.
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"For the next year or two, things look pretty good for the market," he said Tuesday.
Hutchinson said the worry that the country will default on its debt is overblown.
"That will not happen. We take in revenues every month, more than 10 times what it takes to pay the interest on our debt," he said.
"And legally they're obligated to do that first, and you can also prioritize Social Security payments, payments for the military — so a default as it's currently being projected in the media is a complete falsehood."
Not that there couldn't be a few bumps on Wall Street in the coming days.
"Nobody knows exactly what'll happen. Now you use the word 'default' and they insinuate it to mean not paying our bonds, but you can also say if you don't pay any of your bills on time, it's a technical default, which could be arguably the case," he said.
"Now, if that happens, no one really knows what would happen. But it most certainly wouldn't be the catastrophe that some are [predicting] out there."
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