Financial repression involves policies that keep interest rates artificially low to reduce the cost of public debt. Global public debt is projected to exceed 100% of GDP by 2029. Investors can use assets like gold, real estate, and stocks to counteract financial repression. Governments are turning to financial repression to manage increasing public debt, with the US debt-to-GDP ratio expected to reach 143% by 2030. Interest rates below inflation can deflate debt even without economic growth, posing challenges for investors. To combat financial repression, investors can focus on real assets like gold, real estate, and stocks for protection against inflation. European bank stocks, subordinated credit, and high-yield emerging market securities offer attractive real yields despite the economic challenges.

Read more at Morningstar: What Is Financial Repression, and Why Should Bond Investors Fear It?