For years we have addressed the issue of debt for our investors. It seems there are very few issues that strike fear in the hearts of investors like that of debt. Whether the debt be personal, corporate or government, very often it is used by the crisis industry (otherwise known as media) to make even the most savvy investors shake in their boots!
First Trust's Brian Wesbury has, over the years, been a voice with which we agree on most topics. We urge investors to listen to his latest video in which he uses very plain language to put the "debt issue" into context.
Simply put, it is the productive economy, the income it generates and the assets it holds that must be looked at when determining whether or not debt levels are concerning. We would narrow it down even further and simply suggest the most important issue concerning debt is that it be used for productive purposes. Since the U.S. is one of the most productive economies in the history of the world, that alone is enough to make us less concerned about debt.
Should we completely ignore it? Absolutely not! Should we lose sleep over it? Not a chance, as long as the ratios continue at the levels they currently stand. $22 Trillion in debt versus $300 Trillion in assets is workable!
