Regarding the recent Podcast:
- US debt fears overblown
- US debt is high, but not unsustainably so (compared to global economies)
A more relevant concern may be focused on the appetite or ability of investors to buy the quantum of debt being issued by the US government.
- Foreign investment in US debt has declined
- China and other central banks have been buying gold
- US treasury auctions are historically large ($125 billion on auction this week)
As investors how do we position our investment portfolios for risks related to spiraling and unsustainable debt levels by our government:
- Resulting conditions will likely consist of high inflation, high interest rates, higher taxes, slower economic growth
- Real assets tend to perform better. Gold, real estate, aviation assets.
- Better to have some leverage
- Tax efficient investments (such as real estate and aviation assets)
Current market trends
- Latest FED outlook
- Interest rate outlook
