The rising U.S. budget deficit has become a major concern, with 2024 alone seeing a $2 trillion increase. This gap must be funded either by cutting spending, raising revenue, or borrowing more – resulting in a surge of new Treasury debt.
If borrowing continues to outpace economic growth, we could face higher interest rates, which may erode the value of fixed-income investments and cash holdings.
Inflation risks and market volatility may also rise as uncertainty grows. This is why it is so important to prioritize the management of investor portfolios with strategies that account for these potential risks that may arise.
Borrowing Beyond Growth
- We believe the preservation of capital is key to consistent, long-term investment success.
- Our investment approach is grounded in economic theory and backed by quantitative analysis.
- Managing drawdown risk is a pillar from which we build our portfolios.
60-Second Breakdown: February 10, 2025
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
Best Invest Advise EVER!
Bryan Bourgeois, CEO/Founder of Shorebreak Capital, discusses why 90% of investors fail and how to avoid these common investment mistakes with Conner Small, Partner at Redwood Investment Management, Shorebreak Capital’s dedicated asset manager.
