The Ticking Debt Bomb: How to Safeguard Your Investments from the Inevitable

According to Wharton Professor Kent Smetters and insights from notable hedge fund managers Mark Spitznagel and Ray Dalio, the US is on the verge of a severe economic downturn, potentially culminating in the worst stock market crash since 1929 due to an unsustainable debt trajectory. Federal spending has significantly outstripped tax revenue, a trend exacerbated by the global financial crisis and further intensified during the pandemic. To hedge against an economic downturn, Smetters recommends buying bonds that adjust for inflation.