Call: 0123456789 | Email: info@example.com

The U.S. debt-to-gross-domestic-product

The U.S. debt-to-gross-domestic-product


Everyone is aware of the budget deficit in the U.S. Last year, the deficit was $1.3 trillion, and we are certainly on track to at least match that deficit in 2012. The U.S. debt-to-gross-domestic-product (GDP) level is at 100% —one dollar of debt for every dollar of revenue generated—and climbing.

With this in mind, investors should think of diversifying some of their money out of U.S. dollars, and owning countries that have not printed money and the deficits of which are not as large as countries like the U.S.

Australia and Canada are two countries that have their budget houses in order. Australia’s latest debt-to-GDP is just over 26%, which means the country has $0.26 of debt for every dollar of revenue generated. Like a household, this is clearly a healthy level of debt that can be paid off, even if the economy contracts.

In Canada, the debt-to-GDP is roughly over 67%, which means the country has $0.67 of debt for every dollar of revenue generated. These are numbers that are not as low as Australia’s numbers, but clearly a more sustainable level than the U.S.

Should economic growth continue to worsen around the world, countries like Australia and Canada will be in a better position to ride out the bad times. Naturally, their currencies will strengthen as a consequence.

Also, because they are healthier countries in general, even if economic growth picks up, these countries will continue to attract investors to their currencies, because they are in much better fiscal shape than the U.S.

Not only are these currencies safer investments, but these countries are also home to some of the largest gold mining stocks in the world.

We at Penny Stock Detectives believe that the bull market in gold bullion and gold mining stocks still has a long way to run. Thus far in 2012, gold bullion has been one of the best performing asset classes in the stock market. Although the gold mining stocks have participated to a limited extent, gold mining stocks are still undervalued compared to the price of gold bullion. for more details, visit : http://smallbusinesseurope.org/internet-for-new-stock-newsletters/

Gold mining stocks are roughly pricing in a longer-term price of gold bullion between $1,300 and $1,400. This means that, if gold bullion continues to rise past $2,000, this will make gold mining stocks even more inexpensive.

Penny Stock Detectives strongly believe that, if gold bullion rises above $2,000, it will attract new investor money into gold mining stocks. When new investors look to invest in the gold sector, they can either buy gold bullion at $2,000 or the gold mining stocks that are trading at levels that reflect gold bullion at $1,300-$1,400. We think new investors will choose gold mining stocks.

With their economic houses in better shape than most countries in the world, the Australian and Canadian dollars are currencies that Penny Stock Detectives believes an investor should own. Home to some of the largest gold mining stocks in the world, investors can own these strong currencies by owning gold mining stocks, which are trading at a discount to the current price of gold bullion. Protection with great upside.

RSS Stock Market

  • Aphria Stock (TSX:APHA) (NYSE:APHA) Falls Back From highs: What to Expect Now? May 19, 2020
    April was not a particularly great month for many stocks and especially so for those who belong to the cannabis sector. However, Aphria Inc (TSX:APHA) (NYSE:APHA) proved to be one of the exceptions in this regard and went against the tide to record substantial gains. Major Developments Aphria stock managed to deliver gains of 25.5% […]
  • Is Aphria Stock (TSX:APHA) (NYSE:APHA) A Solid Value Buying in May? May 19, 2020
    The cannabis sector has gone through its fair share of difficulties over the past year, but some stocks have managed to garner interest among investors all the same in recent days. The stock in question is Aphria Inc (TSX:APHA) (NYSE:APHA). There had been a lot of optimism around the sector in the past, but over […]
  • Aurora Stock (TSX:ACB) (NYSE:ACB) Soars As Earnings Top Estimates May 19, 2020
    Canadian cannabis firm Aurora Cannabis (TSX:ACB) (NYSE:ACB) has been in all sorts of trouble for the better part of the past months. Considering the fact that it is one of the biggest cannabis firms in the industry, there was a lot of anticipation around its fiscal third-quarter results. Solid Earnings The results were released on […]
  • 4 Hot Biotech Penny Stocks to Watch (GERN), (SRNE), (SEEL), (AFRM) May 19, 2020
    Investments in biotech penny stocks can pay off handsomely, and that is possibly the reason why these stocks are tracked closely by thousands of people every day. The markets have been quite volatile in recent weeks, but despite that, some penny stocks have managed to record significant gains, and it is important for investors to […]
  • Charlotte’s Web Holdings (TSX:CWEB) (OTCQX:CWBHF) Fails To Impress Markets May 19, 2020
    Charlotte’s Web Holdings (TSX:CWEB) (OTCQX:CWBHF) released its quarterly results on Thursday, but the stock ended the day at the level at which it had started. It came as a surprising turn of events considering the fact that many cannabis stocks and the wider market recorded gains yesterday. Key Metrics The company, which is primarily focussed […]
  • Is Cresco Labs Inc (OTCQX:CRLBF) Stock a Good Buy After The News? May 19, 2020
    Due to the overall slowdown in the cannabis space, some companies had put off construction projects, but Cresco Labs Inc (CSE:CL) (OTCQX:CRLBF) is one of the exceptions in this regard. This past Friday it emerged that the company has completed the expansion of its facility located in Brookville in Pennsylvania. Major Development It is a […]
  • Is Cronos Stock (TSX:CRON) (NASDAQ:CRON) Ready to Jump in June? May 19, 2020
    The cannabis industry had been struggling with regards to growth even before the coronavirus pandemic had hit and currently, there are only a few companies that have the capability of still generating growth. Cronos Group (TSX:CRON) (NASDAQ:CRON) is one of the bigger cannabis companies in the industry, and it is one of the firms that […]
  • Cronos Stock (NASDAQ:CRON) Falls After Earnings: A Good Buying Opportunity? May 19, 2020
    The cannabis sector has been in trouble for many months now, and some of the biggest companies in the sector have experienced steep declines in their stock prices. Cronos Group (TSX:CRON) (NASDAQ:CRON) has not been able to escape either, and in 2020 so far, the stock has declined by as much as 27%. Earnings Review […]
  • Curaleaf Stock Gains Momentum At Lower Level May 19, 2020
    Curaleaf Holdings (CSE:CURA) (OTCQX:CURLF) is now firmly established the biggest multi-state cannabis operators in the United States, and it has expanded its footprint to 17 states in the country. As such, it is also one of the better-known stocks in the cannabis space. That being said, the coronavirus pandemic has come as a major blow. […]
  • Is Green Thumb Industries (OTCQX:GTBIF) a Solid Buy After The Recent Correction? May 19, 2020
    Cannabis stocks have been beaten down for quite a while, and some of the biggest names in the industry have seen their stocks record significant declines. That being said, there are still many promising companies in the sector, and one of those is Green Thumb Industries Inc. (CSE:GTII) (OTCQX:GTBIF). Key Things to Watch  The Chicago […]