Institutional managers: Concerns about the U.S. government's ability to repay its debts may deter some investors from putting their money into U.S. Treasury bonds

Patrick Fruzzetti, a portfolio manager at Rose Advisors in New York, believes that the biggest difference now compared to Trump's first term is the level of deficit spending. According to the Congressional Budget Office, the U.S. debt burden has increased from less than $17 trillion at the end of 2019 to about $28 trillion, with the federal deficit-to-GDP ratio expected to exceed 6% by 2025. Portfolio manager Jeff Muhlenkamp stated that concerns about the U.S. government's ability to repay debt may deter some investors from putting money into U.S. Treasury bonds. He has allocated about 12% of the assets in his eponymous fund indirectly to gold. "Actions speak louder than words," Fruzzetti said regarding the incoming Trump administration's commitment to controlling the federal deficit. "Unless they can prove it with actions, I won't reduce my gold positions."