Given the otherwise robust US macroeconomy, the outlook for the national debt arguably is one of the most pressing challenges. Ordinarily, during an election campaign, one would expect candidates to outline how they intend to address critical issues like this. However, neither Harris nor Trump has put forward comprehensive plans to reduce the US debt. Instead, both candidates have introduced economic proposals that are likely to exacerbate the already unsustainable debt trajectory, potentiall...| Rangvid’s Blog
Since the 2007 financial crisis, the US has borrowed significantly more than Europe to fund higher public spending, which has contributed to faster economic growth in the US. But what about the future? Will the US continue to outpace Europe in borrowing?| Rangvid’s Blog
The US stock market has grown much faster than the US economy since the early 1980s. The total value of US corporate equities is now 280% of US GDP, up from 50% in the early 1980s. A key reason for this is the decline in interest rates over the same period. While interest rates have risen since 2022, they still cannot fall as much in the future, and therefore cannot support stocks as much, as they have over the past forty years. Expect low future returns from stocks.| Rangvid’s Blog