Q: Id like your comments about the current drama and politics in the US regarding the debt ceiling. Given the parties track record of party line versus cooperative efforts I am thinking this may be an instance where no agreement is reached, and would like recommendations for ETF hedges.
5i Research Answer:
We really see this as more of a media and political event than a market event. This movie has been played many times before. Despite all the rhetoric, no one wins. If there was a default, however, we think the only safe bet would be a gold ETF, such as PHYS. Gold stocks could go down still but gold bullion would likely withstand a default best.