The United States Debt Just Passed an Auspicious Milestone. Here's What Legendary Value Investor Howard Marks Says Investors Should Do About It.
If the U.S. experiences a currency crisis, how would that affect stocks?
Overview
Some market commentators have been warning about rising U.S. debt for some time now; however, the problem is becoming more acute today. Long-term interest rates have leaped higher over the past six months. The yield on the 10-year Treasury bond, which dipped below 4% in March, has risen to 5.18% as of this writing. That's the highest 10-year Treasury yield since 2007.
Interest costs to the United States government recently hit $1.25 trillion in 2025, exceeding this year's defense budget, while accounting for 18.5% of tax revenue.
Details
Escalating federal debt is no doubt concerning to investors. But what are the consequences of it? And how should investors take this into account when building portfolios?
Source
Originally published at www.fool.com.