Two Choices, One Hope
US government debt now totals $31 trillion, which equates to roughly $240,000 per American household. That's bigger than the average mortgage balance. Many economists believe debt and deficits don’t matter. We believe they do. It leaves Washington in a precarious position as it balances competing policy objectives (namely curtailing inflation, while maintaining economic stability). The bank failures of last month, we fear, make this balancing act even more precarious. Steve and I recently sat down to discuss what this means. What is the most likely path forward? Steve posits that Washington has two realistic policy choices. Yet, there is one “Hail Mary” path that we can hope for.
You can listen or watch by clicking above.
Although we are hoping for the “hope” path, we believe it unlikely. We thus believe the best investment policy is to remain thoughtfully diversified with a flexible and adaptable mindset.
Yours in the Field,
Frank Byrd, CFA
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