George Noble: U.S. debt issuance at 7% of GDP with economy growing at 2%

George Noble: U.S. debt issuance at 7% of GDP with economy growing at 2%
U.S. debt outpaces economic growth rate

George Noble highlights that the U.S. is issuing debt equal to 7% of GDP, while economic growth stands at 2% and unemployment remains near record lows.

He adds that the 10-year yield is around 4.7%, and questions how the bond market prices the same yield a decade forward.

Noble has previously raised concerns about equity valuations. He highlighted that Tesla was valued at 13 times revenue despite negative free cash flow and an ex-growth profile in the auto sector in a recent note. In another post, he questioned Tesla’s $840 million robotaxi business valuation relative to its $700 billion market cap (link).

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