Recent data from the U.S. Department of the Treasury indicates that the United States' debt load has been increasing at a rapid pace, with the nation's debt surpassing $34 trillion on January 4, 2023. This milestone comes after reaching $33 trillion on September 15, 2023, and $32 trillion on June 15, 2023. The $1 trillion increase from $31 trillion took about eight months, but the recent pattern has shown a quicker acceleration, with the debt growing by nearly $1 trillion every 100 days.
The current U.S. debt stands at nearly $34.4 trillion as of Wednesday. Bank of America investment strategist Michael Hartnett predicts that this trend will continue, with the debt likely reaching $35 trillion in the near future. This significant increase in debt has led to concerns about the country's fiscal strength, prompting Moody's Investors Service to lower its ratings outlook on the U.S. government to negative from stable in November.
In light of these developments, Hartnett noted that the market is seeing increased interest in alternative assets such as gold and bitcoin, with gold trading around $2,084 an ounce and bitcoin around $61,443. Cryptocurrency inflows are on pace for a strong year, with an annualized inflow of $44.7 billion so far.
Despite these concerns, some experts believe that there are opportunities for investment in the current economic climate. Berkshire Hathaway, Nvidia, and under-the-radar software stocks with ties to Nvidia are among the options being recommended by analysts. Additionally, real estate investment trusts (REITs) are being highlighted as potential investment opportunities in the current market.
Overall, the increasing debt load of the U.S. and the resulting concerns about fiscal strength have led to a shift in investment strategies and a growing interest in alternative assets and sectors.