
The U.S. Deficit Is Exploding: How I'm Positioning For What Comes Next
Seeking Alpha
Published: Jul 18, 2026, 08:05 PM GMT+9
Samuel Smith Investing Group Follow 5 Share Save Play ( 10min ) Comments (2) Summary U.S. federal deficits are widening even during economic growth, with CBO projecting $3.1T deficits (6.7% of GDP) by 2034, far above historical norms. I take a look at what this means for the economy and stock market in both the near term and long term. I detail how I am positioning my portfolio to profit from this major macro trend. Looking for a portfolio of ideas like this one? Members of High Yield Investor get exclusive access to our subscriber-only portfolios. Learn More » artoleshko/iStock via Getty Images As the chart below demonstrates, federal spending is rising faster than federal receipts on a trailing 12-month basis, which is leading to a widening of the federal deficit. What this indicates is that the U.S. is not only currently This article was written by Samuel Smith 51.14K Followers Follow Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering from Texas A&M with a focus on applied mathematics and machine learning.Samuel leads the High Yield Investor investing group. Samuel teams up with Jussi Askola and Paul R. Drake where they focus on finding the right balance between safety, growth, yield, and value. High Yield Investor offers real-money core, retirement, and international portfolios. The service also features regular trade alerts, educational content, and an active chat room of like-minded investors. Perspective: "Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where neither moth nor rust destroys, and where thieves do not break in or steal; for where your treasure is, there your heart will be also ... For what will it profit a man if he gains the whole world and forfeits his soul?" ~ Jesus (Matthew 6:19-21; 16:26)Learn more Analyst’s Disclosure: I/we have a beneficial long position in the shares of GLD, SLV, EPD, RYN 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.
Source: Seeking Alpha
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