Total debt (government, corporate, and individual) in the United States has increased from $50 trillion in 2008 to over $80 trillion today.
The federal government ran a $3.1 trillion deficit in the fiscal year 2020, more than triple the fiscal year 2019. This year’s debt was 15.2% of the GDP, the most significant deficit as a share of the economy since 1945.
My prediction is that it will be more difficult for both U.S. stocks and bonds to go up in the coming years. Either the economy will recover and push interest rates higher and bond prices lower or we will experience a double-dip recession with falling stock prices.
This presentation is a hypothetical view of financial planning items a client might see in the course of an advisory review. This is for informational purposes only and should not be construed as an investment recommendation or solicitation. Please consult a financial professional to discuss your individual situation prior to making any investment decision.