VTI - Less And Less Bang For The Buck
2024-05-01 17:17:01 ET
Summary
- Federal debt levels continue to increase at an alarming rate, and the nation's GDP to debt level is now the highest in U.S. history.
- Unfortunately, increased government spending is garnering less and less return in the form of economic growth and tax receipts.
- Massive federal funding needs have been a factor behind the recent rise in treasury yields.
- Combined with inflation being increasingly "sticky," Stagflation is getting more mentions as hopes for a "soft landing" appear to be ebbing.
- We take a look at these disturbing trends and what it could mean for the markets in the paragraphs below.
Today, we are going to talk about the 800lb gorilla in the room for long-term investors. Something that should be discussed frequently by the financial media, but simply isn't. It is my #1 existential concern about the markets and the economy. It is also why I currently trade equities like I am a playing a game of " musical chairs," and I am making darn sure I have a seat with the music stops....
Less And Less Bang For The Buck