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Beecroft: The "chilling" prospect of a US default
The possibility of a US debt default is just days away and the Chairman of Saxo Capital Markets, Nick Beecroft, says it's a "chilling" prospect. America is already into the second week of a partial government shutdown because of a political log-jam and if things don't improve soon, Nick says that S&P 500 could plunge 10% "in extremis".
Nick points to the Vix volatility index which is currently quite low. But if investors start to panic that could shoot up to levels that we saw back in 2011 in the last contentious debt-ceiling debate. However, he says with volatility comes opportunity. Traders need to be prepared for the situation to change quicly and be positioned for sharp equity falls or rises in US treasuries.
01:36 minutes
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