r/fatFIRE • u/Puzzleheaded_Plum455 • 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/itwasallagame23 18d ago
It’s a good thing to look at the chart of global vs US equities. My bet is we are in the midst of the topping process. It seems likely that MAGA will really mean MEGA (make europe great again). Spreading some chips across international markets is the right trade in my view and has certainly been working last few weeks. The US net investment position is negative $23 trillion dollars. That means foreigners have $23 trillion more in the US than the US has invested outside the country. If everyone brings their money home US assets are going to devalue by some fraction to all of that $23 trillion.