Fitch Says U.S. States Experienced A Steep Decline In Long-Term Liability Burdens In Fiscal 2022, But Decline Is Only Temporary
Portfolio Pulse from Benzinga Newsdesk
Fitch Ratings reports that U.S. states saw a significant drop in long-term liability burdens during fiscal 2022. However, this decline is expected to be temporary as it is largely due to robust revenue growth and federal aid, which are not sustainable long-term.
November 15, 2023 | 6:54 pm
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The Fitch report indicating a temporary decline in state liabilities may have a neutral impact on SPY as it reflects short-term fiscal health improvements not directly tied to market performance.
While the report from Fitch highlights a positive fiscal development for U.S. states, the temporary nature of the decline in liabilities means that it does not have a direct or lasting impact on the broader market, which SPY represents. Investors in SPY are typically more concerned with long-term economic trends and corporate earnings, rather than short-term state fiscal changes.
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