Sevens Report Research has warned that America's national debt, which recently hit $40 trillion, could lead to a 'lost decade' for stocks due to inflation. The firm's founder, Tom Essaye, suggests that policymakers may attempt to inflate away the debt rather than raise taxes or cut spending. This has contributed to rising long-duration Treasury yields, with 10-year and 30-year yields reaching some of their highest levels in two decades. The warning adds to concerns about high stock valuations and potential poor returns over the next decade.
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