LAS VEGAS - The federal budget deficit is estimated to skyrocket to $1.6 trillion in 2011, but Andrew H. Friedman of The Washington Update told a standing-room only crowd at the Investment Management Consultants Association's annual conference that there are still opportunities for investors.While the substantial deficit is here to stay, the $2 trillion in stimulus that has flooded the economy has made for huge growth in the stock market, Friedman explained. “We need to be careful what happens when the stimulus stops,” he added.

The deficit, Friedman explained, will lead to higher interest rates, greater inflation, and a decline of the U.S. dollar, which will ultimately lead to slower U.S. growth of 2% to 3% annually and higher taxes.

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