Not buying US for a while. 60% exposure is already too much.
Buying European until my portfolio is 30% European. Then I will buy global index funds again, preferably a mix that excludes the US. Don’t want more than 20-30% in US stocks. The political risk is too high in my opinion
I am so glad I bought so much foreign currency in January.
“This suggests foreigners have been and are continuing to sell U.S. stocks and sending their money elsewhere,”
I just know we did, and frankly I don’t understand those that don’t?
where is some decent spots as an american, there is nothing more scary than having that convicted rapist and serial biz failure to want my money anywhere he can influence it
I’d say EU is the best spot. But I may be biased. But IMO EU stands for reliability economically, and in political direction, and in respect for its citizens and in international relations.
With China we have seen the system can make harmful interference as we saw with Jack Ma. So for me China is not an option either. It’s actually worse than USA, although not by much.
but what is even the method, if the us currency is cooked what make world work then?
The USD is the most used reserve currency, that will probably remain the case for a while yet, but it will probably decrease, and other currencies will be used more.
That’s not a problem for the world, only for USA. As it will make it necessary to print less money, and/or increase interest rates to stave off inflation. This will of course make USA a bit poorer than it would have been otherwise.
How dramatic the effect will be obviously depends on the speed this will happen at. I think it will be slow, so not very dramatic.But I don’t think Trump understands the privilege it has been for USA to have the world leading reserve currency.
The USD is the most used reserve currency […] but it will probably decrease, and other currencies will be used more.
That’s not a problem for the world, only for USA.Uhh yeah, that’s absolutely a problem for the world. You literally just said USD is the most used reserve currency (also, the basis for the petrodollar at the moment). Of course changing that is going to affect “the world”.
I never claimed it wouldn’t affect the world, only that it wouldn’t be a problem, it just means selling off USD to buy other currencies to trade with instead, that is obviously not a problem. Only USA will be affected negatively by their currency being sold and losing value. If this happens fast the USD will plummet. And that will probably mean vastly increased interest rates and inflation in USA.
You’re naive if you don’t think other nations will suffer when the USD fails. We’re in a global economy, and our currency is basically considered the world’s reserve currency. That means that other nations have USD. What do you think happens when the dollar fails?
Are those nations somehow indemnified against losses in some way I’m not aware of?
just the turmoil from moving from one to the other. Then lets say EU takes off, but they get psy-oped to FAFO also. Where does it end when in this current climate that there is no centralized barometer of value?
More like America has already been sold
Can confirm.
I’m not selling but my future investments will be far more global. You’re no longer diversified if the bulk of your investments are based in the US.
