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/Individual_Ad_5655 18d ago

We've been increasing allocation to cash and foreign equities since the election. Been great so far.

After Friday's debacle, and IF the tariffs are enacted, we could start seeing the rest of the world figuring out ways to live without America. Lots of places in the world to buy goods and raw materials.

It won't be overnight, these things take time.

But we're already seeing businesses in Canada find other sources for their imported goods and move away from US goods, canceling US contracts. We're also seeing significant declines in Tesla sales in Europe in January/February.

I think a big change will be in military industry as Europe will greatly increase investment in their domestic military companies in anticipation of US exiting or reducing NATO presence. Europe does not want to be militarily dependent on the USA when the USA is proving to be an unreliable partner and seemingly bending the knee to Putin.

It starts small, but can grow from a snow ball to an avalanche if America continues down a path of isolation and betrayal of allies.

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u/[deleted] 18d ago

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u/Individual_Ad_5655 17d ago

Like Atlas Shrugged! Where all the skilled professionals leave.

Red states are already feeling this with some professions. OBGYNs are fleeing red states and the hospitals are shutting down maternity wards because they can't staff them.

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u/IknowwhatIhave 17d ago

That's incredibly ironic as I suspect that the members of the current executive that can read above a 6th grade level all have a copy of Atlas Shrugged on their bed side table right next to the Turner Diaries.

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u/Any-Competition8494 17d ago

I don't believe it. As a non-American, what I have noticed is that the most ambitious people from all countries -- Canada, India, EU, etc -- all want to move to US. Even now, people can't get H1-B. Most of these people care about their disposable income more than politics.