From Yahoo Finance: 2025-06-21 16:10:00

Elon Musk warns that the U.S. national debt is hindering economic growth and could lead to higher interest rates. Stocks like Prudential Financial may benefit from this scenario. The debt-to-GDP ratio has increased significantly, with Musk arguing for a solution to prevent unsustainable debt burdens. Rising debt levels could drive up long-term interest rates, impacting stock valuations.

Musk and Trump’s public dispute over the national debt raises concerns about the country’s economic future. Life and retirement insurance companies like Prudential Financial, MetLife, and Corebridge may offer protection against rising debt and interest rates. As the national debt increases, more spending and debt servicing costs could lead to higher long-term interest rates, affecting various sectors of the economy.

Rising debt issuance and debt servicing payments indicate a potential increase in long-term interest rates. Life and retirement insurers, such as Prudential Financial, MetLife, and Corebridge, could benefit from higher rates as they invest in low-risk assets like government debt. These companies may see improved returns from corporate bonds and other investments as interest rates rise.

Insurance companies like Prudential Financial, MetLife, and Corebridge hold assets in their general accounts that are well-suited for a rising interest rate environment. These fixed income investments provide stability and potential growth as interest rates increase. Investing in these companies could be a strategic move for those concerned about the impact of rising public debt on future interest rates and stock valuations.



Read more at Yahoo Finance: What if Elon Musk Is Right About U.S. National Debt? 3 Stocks to Buy if He Is.