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The national debt just hit $40 trillion and rising. Seems like possible dire consequences for the markets perhaps the economy as more borrowing may raise interest rates.
’What is the general consensus on the risks we may be facing. Time to go into bonds?
When the number of retired people is reaches 50% of the workforce, the taxes required to balance the budget would be crushing. It’s not surprising they can’t do it, and have to rely on deficit spending.
No.
Forty trillion is a number so large that it is indeed hard to fathom, but it is no surprise that we reached that level. The debt has been rising for a long time and looks like it will continue to do so.
What to do? In my opinion, the best strategy for an investor to follow when reading the news is to stick with your asset allocation, rebalancing as warranted. My allocation was chosen, not to maximize my wealth, but rather so that when I read or hear something disturbing, I don’t need to take action. Remember the wise maxim: “Don’t just do something, stand there!”