Invesfera Newsroom
US debt at 100% of GDP is a slow bill, not a doomsday date
Federal debt has reached the size of the US economy. The risk isn't a crash day but long-term yields near 5% that could quietly raise what everyone pays to borrow.
Federal debt has reached the size of the US economy. The risk isn't a crash day but long-term yields near 5% that could quietly raise what everyone pays to borrow.
With the 10-year back above 5%, cash-like safety pays real money, and equities must now earn their valuations through profits instead of hope.
Savers finally get paid for waiting, but a 10-year yield above 5% can squeeze stock valuations and mortgage borrowers, so it's a good moment to check your bond/stock mix.