Debt Drama

January 17, 2023

Enjoy this week's "Investor Insights," a weekly newsletter that highlights the financial news you need to know and provides tips and tricks to help you make better investment decisions.

The US may hit its debt ceiling this Thursday if Congress does not act. The national debt has grown substantially and is 120% of GDP today compared to 106% in 2019. The last time Congress did not raise the debt ceiling in 2011, the S&P 500 dropped 6.6%. ₁

At the height of the tech bubble in the early 2000s, the technology sector never generated more than 14% of the S&P 500’s total earnings. Today, however, technology accounts for 21% of S&P 500 earnings. ₂

Although the economy is slowing, social security payments may decrease the pain for everyday Americans. Social Security payments, which go out to nearly 30% of the adult population, will rise by close to 9% this year as they are indexed to inflation. ₃

Europe's STOXX 600 index has gained 17% since the end of the third quarter in 2022, versus only an 11% gain for the U.S. S&P 500. This is partially because the tech sector amounts to 26% of the S&P 500, while tech is only about 7% of the STOXX 600. ₄

If you would prefer not to receive these weekly updates, click the button below.

Opt-Out of Investor Insights Emails*

Other Glen Eagle Resources

Recent Newsletter

Webinar Recording

Please feel free to share this newsletter with your network

Your Glen Eagle Advisors

Susan Michel

Rob Michel

Carol Ann Fernandez

Schedule a Meeting with The Michel Team

Barron's - "Government Debt Could Be a Big Problem for the Stock Market"
The Irrelevant Investor - "Animal Spirits: What's the Negative Catalyst?"
Barron's - "The Age of Free Money Is Over. But There Are Still Opportunities, Investing Pros Say."
Reuters - "Wall St Week Ahead: U.S. Investors Hunt for Gains in Foreign Stocks"

*We will continue to keep you updated with our quarterly newsletters and webinar events. If you would like to update your email subscription, please click "Update Profile" at the bottom of this email.

Disclosure: This information is furnished for the use of Glen Eagle Advisors, LLC, Glen Eagle Wealth, LLC, and their clients and/or contacts. It does not constitute the provision of investment advice to any person. It is not prepared with respect to the specific objectives, financial situation, or particular needs of any specific person. Investors reading this commentary should consult with their Glen Eagle representative/financial advisor regarding the appropriateness of investing in any securities or adapting any investment strategies discussed or recommended in this newsletter.

Glen Eagle Wealth, LLC is a member of FINRA, MSRB and SIPC

Glen Eagle Advisors, LLC is a SEC Registered Investment Advisor

Glen Eagle ADV Part 2A