AAA Ratings Review: Money Morning’s Four Countries That Beat U.S. Bonds

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U.S. Treasury bonds could lose their AAA ratings any day now. And with America no longer a safe option, where can investors look for stable government bonds? Sovereign debt expert Martin Hutchinson shows Money Morning readers the four countries to buy… and which countries to avoid at all costs.

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These four countries don’t have a major risk of sovereign debt default or a potential downgrade in their AAA credit ratings.

On Friday, Standard and Poor's warned that the United States had a 50-50 chance of losing its AAA ratings on debt in the next 90 days.

For years, investors throughout the world have viewed U.S. government debt as the "safe haven" of last resort.

American Treasury bonds were the safest on the market. And they were bought by foreign governments and private investors, alike.

But the U.S. national debt is on its way toward $13.2 trillion. The government has yet to reign in spending in any substantial way. And debt alone could cost the country as much as $71 billion a year with the current debt ceiling increase on the table.

And with those statistics facing the country, Standard and Poor’s decision to downgrade America’s AAA credit ratings won’t be a difficult one to make.

The U.S. is now under a very real threat of a sovereign debt default, and investors must move into bonds from safe countries with stable economies if they want to protect their wealth.

But where can they find these new “safe havens”?

Nations across Europe are even closer to a sovereign debt default than the U.S. And some of the countries with the biggest troubles ahead are those investors have yet to hear about.

For instance, everyone knows to get as far away from Greek debt as possible, but Greece could end up dragging down Denmark and Luxembourg with it in coming months.

And according to Money Morning’s Martin Hutchinson, investors should avoid bonds issued by all three countries.

Hutchinson, a 25-year investment banking veteran, has made an in-depth examination of the global bond market and isolated four countries with healthy economies, stable industries and balanced government spending.

These four countries don’t have a major risk of sovereign debt default or a potential downgrade in their AAA credit ratings. And according to Hutchinson, they’re the only four government bonds any investor should own right now.

Learn Hutchinson’s four grade-AAA governments in a new story on Money Morning, “A Sovereign Debt Default Survival Kit: The Four Countries That Will Keep Their AAA Ratings.”

Money provides valuable investment research and analysis to its more than 650,000 readers everyday. Its market and industry experts offer unique insights on new market trends and little-known companies and industries, while showing readers the truth behind today’s biggest news stories.

(**) Please feel free to repost this story on your website, including a link to the original article on Money Morning – only the investment news you can profit from.

William Patalon III
Executive Editor


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