Stephen Smith, vice president and chief investment strategist for Whittier Trust Company
With less than a week remaining for politicians to reach a deal to raise the debt ceiling, the stock market has remained relatively calm. Reuters Money reached out to financial experts to determine why these advisers are urging their clients to “stay the course.”
An overwhelming majority expressed faith that lawmakers would reach a deal by the August 2 deadline, and many stated that markets would adjust regardless. According to Stephen A. Smith, vice president and chief investment strategist of Pasadena-based Whittier Trust Company, it’s about more than just the debt ceiling.
“We are more defensive in recent months than we had been previously, but that is primarily because of the debt problems in Europe, not the U.S.,” said Smith in the interview with Reuters. “We have advised clients to maintain their normal strategic exposures to the U.S. stock market … and have moved client cash out of money market funds with exposure to European banks.”
