Gelonghui May 22| Idanna Appio has worked at the Federal Reserve Bank of New York for 15 years, analyzing the history of sovereign debt crises. Now, as a fund manager at $138 billion First Eagle Investments, she has come to a conclusionthetacklebox: U.S. Treasury bonds are too risky to hold. The Fed is expected to cut interest rates, but Appio's judgment is far more than just about the timing of interest rates. It is closely related to a new era of accelerating inflation, increasing government medical spending and widening deficits. What's behind all this? The fact that the world is aging rapidly, and now is the time to keep your portfolio up to date. Instead of buying assets considered the safest in the world to balance her stock and credit holdings, Appio added gold. She believes that yields on long-term U.S. debt do not provide enough compensation, and said U.S. government borrowing has surged, which many people fear could trigger a debt crisis in the next few years.
