National Debt Drama Deepens: Where To Stash Your Cash When The Fiscal Sky Falls
Portfolio Pulse from Natan Ponieman
U.S. national debt is predicted to rise in the next decade, with 88% of scenarios showing an increase in debt as a percentage of GDP. Concerns over this unsustainable debt growth have led investors to seek safe havens like gold, Bitcoin, and real estate ETFs. Bank of America's Michael Hartnett links rising gold and Bitcoin values to debt worries. ETFs like SPDR Gold Trust, iShares Gold Trust, and Abrdn Physical Gold Shares ETF have seen significant gains. Real estate and foreign asset ETFs are also considered safe investments amid U.S. fiscal instability.
April 02, 2024 | 8:48 pm
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SPDR Gold Trust has gained over 23% in the last six months, indicating strong investor interest in gold as a safe haven amid U.S. debt concerns.
The rise in GLD's value is directly linked to investor concerns over U.S. national debt, making gold a preferred asset for value preservation.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
iShares Gold Trust follows a similar trajectory to GLD, benefiting from the trend of investing in gold amid fiscal uncertainty.
IAU's performance is influenced by the same factors as GLD, with investors seeking gold as a hedge against U.S. debt issues.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
iShares Core MSCI EAFE ETF gains interest as investors seek exposure to foreign assets amid concerns over U.S. national debt.
IEFA offers an investment alternative in developed markets outside the U.S., appealing to those seeking to mitigate risks associated with U.S. debt.
CONFIDENCE 55
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Schwab US REIT ETF is part of the real estate sector's appeal as a store of value in times of economic uncertainty and rising national debt.
SCHH benefits from the trend of investing in real estate ETFs as a hedge against fiscal instability and U.S. debt concerns.
CONFIDENCE 65
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Abrdn Physical Gold Shares ETF gains traction as part of the broader move towards gold investment in response to U.S. debt concerns.
SGOL's growth is part of a wider investor shift to gold, driven by concerns over the sustainability of U.S. national debt.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Vanguard Tax Managed Fund FTSE Developed Markets ETF is considered a safe haven from U.S. volatility, appealing to investors wary of national debt.
VEA's appeal lies in its exposure to foreign markets, offering diversification away from U.S. economic concerns and debt issues.
CONFIDENCE 60
IMPORTANCE 55
RELEVANCE 65
POSITIVE IMPACT
Vanguard Real Estate Index Fund ETF is highlighted as a valuable investment for those seeking to diversify away from U.S. fiscal instability.
VNQ offers an alternative investment avenue in real estate, considered a safe asset class amid economic volatility and debt concerns.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 75