Jim Cramer on U.S. debt downgrade: It's different for investors this time around
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2025
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Source: CNBC
Moody's Downgrade Impact: Moody's downgrade of U.S. government debt has led to significant market reactions, with investors shifting focus towards European stocks, particularly the strong performance of German and Spanish markets in 2025.
Comparison with Past Downgrades: Unlike previous downgrades in 2011 and 2023, this time Europe is seen as a viable alternative for investment, highlighting a shift in capital flows away from U.S. equities amidst concerns over national debt and economic policies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
