Challenges from High National Debt and Inflation
The concern over a potential U.S. state bankruptcy due to high national debt is of great importance to investors during crises, as it can have significant implications for financial markets and economic policy. Under President Trump’s administration, U.S. national debt increased sharply, which unsettled investors and led them to seek safe investment forms.
- The rising national debt leads to increased uncertainty about the U.S. government’s ability to meet its obligations, which could undermine confidence in U.S. Treasury bonds.
- At the same time, high inflation negatively affects real incomes and reduces the purchasing power of investors.
Strategies for Asset Protection in Times of Crisis
To protect wealth in the event of a potential state bankruptcy or economic instability, experts recommend the following approaches:
- Diversification: Spreading capital across different asset classes (stocks, bonds from various countries, commodities) reduces the risk of total loss.
- Investment in Tangible Assets: Real estate or precious metals like gold are considered crisis-proof assets as they are resistant to inflation and can maintain their value over the long term.
- Safe-Haven Currencies: Investments in stable currencies such as the Swiss Franc or Euro can provide protection against the devaluation of the U.S. dollar.
- Liquidity Reserve: A sufficient liquidity reserve allows investors to respond flexibly to market fluctuations.
These measures help to make the portfolio more resilient to economic turbulence. It is also essential to closely monitor political developments and make adjustments if necessary.
In summary, investors should primarily focus on diversification, as well as include tangible assets and stable foreign currencies in their portfolios, considering the high U.S. national debt under Trump. This way, wealth can be better protected even in the event of a potential crisis.