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426: Velerity Wealth Update 5/8/24

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Regarding the recent Podcast:

  • US debt fears overblown
  • US debt is high, but not unsustainably so (compared to global economies)

A more relevant concern may be focused on the appetite or ability of investors to buy the quantum of debt being issued by the US government.

  • Foreign investment in US debt has declined
  • China and other central banks have been buying gold
  • US treasury auctions are historically large ($125 billion on auction this week)

As investors how do we position our investment portfolios for risks related to spiraling and unsustainable debt levels by our government:

  • Resulting conditions will likely consist of high inflation, high interest rates, higher taxes, slower economic growth
  • Real assets tend to perform better.  Gold, real estate, aviation assets.
    • Better to have some leverage
    • Tax efficient investments (such as real estate and aviation assets)

Current market trends

  • Latest FED outlook
  • Interest rate outlook