Fund manager Appio: U.S. Treasury bonds are too risky, increase gold holdings

According to Golden Ten reports, Idanna Appio, who has worked at the Federal Reserve Bank of New York for 15 years, is now the fund manager of the US$138 billion First Eagle Investments. She believes that U.S. Treasury bonds are too risky to hold. Appio’s judgment is not only related to whether the Federal Reserve will cut interest rates, but also closely related to the new era of accelerating inflation, increased government medical expenditures, and expanding deficits. Rather than buying what is considered the safest asset in the world to balance her stock and credit holdings, she added to gold. Appio believes that long-term Treasury yields do not provide adequate compensation, citing a surge in U.S. government borrowing that many fear could trigger a debt crisis in the coming years.