Top economist picks ‘last refuge’ assets ahead of concerning future
The post Top economist picks ‘last refuge’ assets ahead of concerning future appeared on BitcoinEthereumNews.com. Veteran economist David Rosenberg has warned about the United States’ fiscal trajectory following the passage of a major tax and spending bill in the House. Rosenberg cautioned that the federal debt-to-GDP ratio is climbing to unprecedented levels, surpassing even those seen during wartime, a development he described as concerning, he said in an X post on May 22. In response, he urged investors to seek safety in what he termed the “last refuge” assets amid what he sees as a looming economic storm. His top recommendations are gold, a traditional safe-haven asset, and Treasury bills (T-bills), which are less sensitive to interest rate fluctuations due to their short-term nature. “Gold, T-bills, and the Asian FX market are the last refuges and if I was a fan of speculative assets (which I am not), I would add crypto to that short list,” he said. Moreover, Rosenberg pointed to opportunities in Asian foreign exchange markets, signaling confidence in the region’s economic fundamentals. Interestingly, despite his typically cautious stance on speculative investments, he also included cryptocurrencies as a potential hedge. The House passed the GOP-backed legislation, dubbed the “Big Beautiful Bill,” including extended tax cuts, increased military spending, and targeted spending reductions. However, these benefits come at a steep cost to the federal deficit. The Fed’s reluctance to intervene Rosenberg also emphasized the Federal Reserve’s reluctance to intervene by purchasing Treasury securities to suppress yields, a strategy it has employed in past financial crises. With inflationary pressures persisting into 2025, the Fed’s hands-off approach means the market must absorb the massive new debt issuance, likely pushing interest rates higher. According to the economist, this surge in interest rates could undermine stock valuations more than the tax relief can boost earnings. As the White House and Congress conspire to take the federal debt-to-GDP ratio…
The post Top economist picks ‘last refuge’ assets ahead of concerning future appeared on BitcoinEthereumNews.com.
Veteran economist David Rosenberg has warned about the United States’ fiscal trajectory following the passage of a major tax and spending bill in the House. Rosenberg cautioned that the federal debt-to-GDP ratio is climbing to unprecedented levels, surpassing even those seen during wartime, a development he described as concerning, he said in an X post on May 22. In response, he urged investors to seek safety in what he termed the “last refuge” assets amid what he sees as a looming economic storm. His top recommendations are gold, a traditional safe-haven asset, and Treasury bills (T-bills), which are less sensitive to interest rate fluctuations due to their short-term nature. “Gold, T-bills, and the Asian FX market are the last refuges and if I was a fan of speculative assets (which I am not), I would add crypto to that short list,” he said. Moreover, Rosenberg pointed to opportunities in Asian foreign exchange markets, signaling confidence in the region’s economic fundamentals. Interestingly, despite his typically cautious stance on speculative investments, he also included cryptocurrencies as a potential hedge. The House passed the GOP-backed legislation, dubbed the “Big Beautiful Bill,” including extended tax cuts, increased military spending, and targeted spending reductions. However, these benefits come at a steep cost to the federal deficit. The Fed’s reluctance to intervene Rosenberg also emphasized the Federal Reserve’s reluctance to intervene by purchasing Treasury securities to suppress yields, a strategy it has employed in past financial crises. With inflationary pressures persisting into 2025, the Fed’s hands-off approach means the market must absorb the massive new debt issuance, likely pushing interest rates higher. According to the economist, this surge in interest rates could undermine stock valuations more than the tax relief can boost earnings. As the White House and Congress conspire to take the federal debt-to-GDP ratio…
What's Your Reaction?
