Investing in the US

Investing / Others
1

Dear Community,

I was recently listening to a book titled How an economy grows and how it collapses and an interesting (probably unlikely) scenario was discussed. I would be interested about your opinion:

The US as a nation is swimming in debt and a (small/large) portion of it is now finance by other nations like China. Consumption itself is not increasing a country’s GDP (the goods are not produced in the US). Long story short… What would happen to a portfolio of investment in US (based) companies (paying dividend in USD) if the US defaults, or hyperinflation would be in the country? (I know I know unlikely, but they said the same to the housing market)… so just in theory what would happen. What would you do?

Cheers
Dan

2

I would continue with the same global market cap strategy, rebalance and invest regularly.

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3

The political strength and intellectual leadership of the US is declining but not necessary the economical power of US traded companies, even if they make most of their profit or production outside of the US. In the case of a drop of the values of the USD it will be noticed by a sharp increase of the dividend expressed in USD and value of the shares expresse in USD. Do not forget, shares protect you against monetary policy and political decisions against savers.

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