The US has many economic problems caused by Trump, Republican enablers and markets. We posit the most significant problem outstanding is the US government bond market.
Renaming Lake Ontario and insulting Canada isn’t going give confidence to investors who are considering buying US government securities so yields on the $40,000bn of debt is only going up. Additionally, $2,000bn of deficit funding needs to be funded. In fact, it is likely that it will cause investors, and central banks, to seek alternatives.
Asset allocators should seriously consider a 0% allocation to US government securities until there is evidence of a rational and functioning politic.
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