Two Key Factors Driving The Economy, Neither Is Sustainable
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Bret JensenInvesting Group LeaderFollow5ShareSavePlay(9min)CommentsFollow us on Google for the latest stock newsFollow Seeking Alpha on Google for the latest stock newsSummaryU.S. markets have reached all-time highs despite escalating geopolitical risks, surging energy prices, and deteriorating consumer sentiment.Current U.S. economic growth is driven by unsustainable fiscal deficits and a massive, increasingly debt-fueled surge in AI infrastructure spending.Major hyperscalers like AMZN, ORCL, and META are cutting staff and reducing buybacks as free cash flow plunges amid record capex.Persistent high-interest rates, rising federal debt, and strained credit markets cast doubt on the sustainability of current growth drivers.The article below examines the two main drivers of the U.S. economy right now, and their potential future.Looking for a helping hand in the market? Members of The Biotech Forum get exclusive ideas and guidance to navigate any climate. Learn More » Getty Images The markets continue a climb, an impressive 'wall of worry,' and are trading right at all-time highs. The Strait of Hormuz has been effectively closed to almost all traffic for nearly two months now. This has caused energy andThis article was written byBret Jensen57.41K FollowersFollowBret Jensen has over 13 years as a market analyst, helping investors find big winners in the biotech sector. Bret specializes in high beta sectors with potentially large investor returns.Bret leads the investing group The Biotech Forum, in which he and his team offer a model portfolio with their favorite 12-20 high upside biotech stocks, live chat to discuss trade ideas, and weekly research and option trades. The group also provides market commentary and a portfolio update every weekend. Learn More.Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.