- At $26 trillion, the federal debt is staggering but currently manageable. What’s troubling is the prospect for its continued growth over the long term.
- We believe the Treasury has done a good job of managing the debt expense, and investors have shown no reservations about buying Treasury securities. Lower rates have helped keep funding costs low, but if rates rise and current spending trends continue, that could change.
- Although it’s unlikely that investors will feel the most damaging effects of America’s fiscal challenges anytime soon, Wells Fargo Investment Institute (WFII) is already factoring the potential impact into our strategic models and recommending portfolio changes for investors to consider.
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