16 Feb 2021
Global Debt: The big negative
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
There is much positive news for economic growth but the elephant in the room is debt.
The World is awash with debt.
It started to ramp up with the 2008 Global Financial Crisis and has reached an extreme level with the COVID-19 Pandemic.
The World Economic Forum lists prolonged excessive debt as a high likelihood economic risk with a high impact. By the end of 2020, they expect global debt to have reached US$277 trillion or 365% of world GDP.
Click for chart.
How does this get fixed? Don’t know.
What we do know is what Benjamin Graham taught and that was to not speculate. Instead remain invested according to your appetite for volatility and when fear and panic take hold, react by buying more quality assets at discounted prices.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.
