The US national debt reached $34,997,540,505,103 as of July 25th, up from $32.59 trillion one year ago. JP Morgan Chase analysts are warning investors about this news.
That’s up from $32.59 trillion just one year ago.
In a new memo to investors from its private banking arm, JPMorgan analysts say there are underlying risks associated with America’s ballooning deficits and high sovereign debt levels. According to the bank, investors shouldn’t expect any significant improvement soon.
“The bottom line for investors is that we don’t expect meaningful improvement in the trajectory for U.S. debt or deficits in the medium term. However, multi-asset portfolios should still be able to deliver for investors. Monetary policymakers have maintained credibility, investor demand for U.S. Treasury assets is still strong, and the tax base is robust.
That said, the risks are meaningful enough to consider adding non-U.S. dollar–denominated assets and “real assets” such as infrastructure, gold and commodities to traditional multi-asset portfolios. A focus on tax efficiency for U.S. taxpayers could also be prudent.”
The US won’t be able to respond to any future economic downturns. There won’t be any money for emergencies.
“For investors, the message is clear: It is probably prudent to move beyond the traditional 60/40 portfolio. Including non-U.S. dollar assets and real assets such as infrastructure, gold and commodities can provide a hedge against potential dollar depreciation and inflation. Tax efficiency is also key.”
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