- The ongoing saber-rattling in Congress over the debt ceiling has a collection of market participants once again considering a potential default.
- Prediction markets reveal a 66% probability of no resolution being signed into law by June 1 with a 15% chance of default this year.
- This temporary conundrum has put a halt on several assets on the verge of breaking out, such as Ethereum and SPY, however strength in large-cap growth and technology continues.
- The debt ceiling will be resolved, as it always is, and risk assets across the board will benefit. Ignore fear inducing news suggesting the potential for a default, which in reality is effectively zero.
