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The U.S. Consumer – Overly Leveraged?

  • Scott Carmack
  • Jan 8, 2016
  • 1 min read

Updated: Mar 27, 2024




Much has been made in the mainstream media regarding the increasing leverage of the average U.S. household. Indeed, in aggregate terms, the numbers can seem overwhelming, often times mind- boggling. At the end of 2014, consumer credit (including both revolving and non-revolving debt) had ballooned to over $3.2 Trillion and mortgage debt exceeded $13.3 Trillion. The amount of outstanding household debt rivals that of the U.S. government and U.S. annual GDP. The exponential increase can be seen in the graph below.

 
 

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The Fund invests in fixed income securities or derivatives, the value of your investment in the Fund will fluctuate with changes in interest rates. These risks could affect the value of a particular investment by the Fund. Investment in or exposure to high yield (lower rated) debt instruments (also known as “junk bonds”) may involve greater levels of interest rate, credit, liquidity and valuation risk than for higher rated instruments. When the Fund invests in other investment companies, including ETFs, it will bear additional expenses.

 

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yield, increase the volatility of the Fund ad/or cause a decline in NAV.

The Holbrook Income Fund is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Holbrook Holdings Inc. is not affiliated with Northern Lights, Distributors, LLC.

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