How Your Investments Are Affected by the National Debt The national debt and growing federal budget deficits could reduce investor profits.

Recently, as America gets ready for the November election, there has been increased coverage of the national debt. After swelling like an expanding water toy dropped in a bathtub during the COVID-19 epidemic, it is especially concerning. From $26.14 trillion in 2018 to $33.17 trillion in 2023, the national debt increased. The U.S. federal government's long-term debt has been downgraded by the three major credit rating agencies due to growing concern. The country now has a lower credit rating than Microsoft Corp. (ticker: MSFT) and Johnson & Johnson (JNJ), even though neither company can print money on its own. The national debt of the United States is predicted to continue growing and surpassing the country's GDP. The following is how investors can respond to worries brought up by growing debt levels: