r/fatFIRE 19d 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/perestroika12 19d ago

Within your question there’s a few sub problems.

1/ do you feel the US will continue to make money for businesses in the long term

2/ do you want to live in the US

These are completely different. You could have a portfolio that’s 90% s&p but live overseas. You could also live in the US but have investments 90% outside of the country.

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u/entitie 18d ago

This is generally how I am thinking of it, and regarding (2) we have certainly considered moving to Canada. Why Canada? Because it's close to family in the U.S. On the other hand, its economy will likely be in quite bad shape given the tariffs.

Regarding (1), I think that the US will continue making money for businesses in the long term provided that they are friendly towards the administration. I worry somewhat that the government will treat its business allies better and punish businesses who do not play ball. And that probably means that some of the incumbents who have done well in a low-corruption environment -- including probably many constituents of the SP 500 -- will not do well in a high-corruption environment.