The US national debt just crossed a staggering $35 trillion, prompting a warning from financial giant JPMorgan Chase.
Debt is a Growing Problem
The US government is now in a massive amount of debt, with the total exceeding $34.99 trillion as of July 25th. That’s a huge jump from $32.59 trillion just a year ago.
JPMorgan analysts are concerned about the rising debt and its impact on the US economy. They believe that this trend will limit the government’s ability to respond to future economic crises.
Time to Diversify Your Investments
JPMorgan is advising investors to consider diversifying their portfolios beyond the traditional 60/40 stock-bond mix. They recommend adding assets that can protect against inflation and a potential decline in the value of the US dollar. This includes:
- Non-US dollar assets: Investing in assets outside of the US dollar can help hedge against potential currency depreciation.
- Real assets: Infrastructure, gold, and commodities can offer protection against inflation.
Tax Efficiency is Key
JPMorgan also emphasizes the importance of tax efficiency, especially for US taxpayers.
The Bottom Line
The US debt situation is a serious concern, and investors should be aware of the potential risks. JPMorgan recommends taking steps to protect your investments by diversifying and considering tax efficiency.
