Is A Debt Crisis Imminent?

"You are going to see a crack in the bond market, OK?" JPMorgan CEO Jamie Dimon said in a May 30 speech at the Reagan National Economic Forum. The US government debt situation is "nearing the point of no return" and approaching a "death spiral" that could threaten the stability of the world's largest economy, Ray Dalio writes in his new book "How Countries Go Broke: The Big Cycle," published June 3.

Dimon and Dalio are smart and influential. We share their concerns. However, anyone who has followed their consistently pessimistic outlook over the past few years has missed a huge rally in the stock market. As for us, we'll worry about the government's debt when the Bond Vigilantes do. If a debt crisis is coming, we should make as much money as we can in stocks and sell just before the crisis hits.