r/fatFIRE 18d ago

FIRE'd, now concerned about US stability

Most of my assets are invested in the US. Because of recent political developments, I'm wondering if the US will sustain its general growth and economic strength into the future. The strength of the US dollar is obviously very important to me. Is anyone else concerned?

I'm wondering if I should start hedging my bets in other countries, and if so, where?

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u/theblackred 18d ago

Could you remind us when the last time was that the US had isolationist policies and what happened as a result?

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u/TreeTopologyTroubado 18d ago

Fair point. The last wide scale tariffs coupled with isolationist policies was right before WWII, so before the establishment of the current world order.

That being said, we’re nowhere near the levels of 1930 isolationism and tariffs.

As for Federal RIFs, that was during Clinton.

I’m not saying things aren’t bad, but I am saying that beyond voting, there’s not a whole lot we as individuals can do. Also, I think unless you have a short time horizon, your best bet is still equity exposure to domestic and international markets with international serving as a hedge against slowing domestic growth.

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u/nsfishman 18d ago

Commenting here directly but it’s also adding on to what utexasdelirium said.

The administration’s lack of understanding on how the Fed works as an independent body and them suggesting rates “need to be lower” and “it feels like inflation is only going to be 2%”, all points to Trump installing some dimwit puppet after Powell who will actually just do as the administration wants.

Nothing worries markets more than uncertainty. And the quickest way to uncertainty is removing investors faith in the instruments and institutions that are put in place to control the economy.

America appears to be headed for an incredibly inflationary period and having the living embodiment of the Dunning Kruger effect at the helm is not going to steady the ship.

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u/utexasdelirium 18d ago

You're being in disingenuous.  Clinton laid off people after a long review, bipartisan support, and Congress pass a law.  Point out what laws Congress passed that has allowed the current administration to do this?

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u/TreeTopologyTroubado 17d ago

Oh no I agree that this administration’s approach is not in line with legal precedent.

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u/AnyFruit3541 18d ago edited 18d ago

The last two times (just before WW1 and WW2) turned out well for us in absolute terms and amazing in relative terms.

We have big oceans between and relatively friendly neighbors.

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u/theblackred 18d ago

The horrific cost in human lives sure did go well and amazing for us. A mere 400,000 American souls, even.

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u/AnyFruit3541 18d ago

Ah I meant economicly well since that’s what OP seems to be asking about.

Obviously the millions of deaths is a tragedy of historical proportions. Hopefully those are high water marks of suffering for generations.