think anything but more economic pain for the US is on the horizon.
Probably so - but when I speak of investing, my horizon isn’t five years from now; it’s two to three decades from now. On that timescale, the effects of a Trump presidency will appear as nothing more than a tiny dip on the graph. The roughly 7% average annual growth of the (mostly US) stock market already includes events like the Great Depression, the Dot-Com bubble, the 2008 financial crisis, two world wars, and a global pandemic. If the US economy survived all that, I’m confident it will survive Trump too.
Putting your investments in one place and ignoring them for thirty years is certainly one investment method, but it’s a really good idea to rebalance every year or two to align with global trends and your investment goals.
Well, there I disagree. Aligning your portfolio with current global trends is precisely how many people flushed their savings down the drain when the dot-com bubble burst. Diversification is how you protect your investments against that sort of thing - and true diversification means spreading your investments across time, sectors, and geography. At least, that’s what you do if your goal is to make money, rather than a statement.
I’m diversified across many industries across the entire world with reduced exposure to the US. Comparing this to people losing their life savings in the dot com bubble leads me to think you don’t understand what I’m talking about.
I’m talking about reducing your exposure in a region of the world that looks certain to suffer a lag in economic growth for an extended period. Reducing your exposure in Europe during the start of the Euro Crisis in 2010 was a good idea, and I think reducing your exposure to the US for the near term is also a good idea. Keeping your investments steadfastly in one place without regard for the reality of the world around you is foolhardy. Moving your investments between mutual funds within your 401(k) or 403(b) costs you nothing
Probably so - but when I speak of investing, my horizon isn’t five years from now; it’s two to three decades from now. On that timescale, the effects of a Trump presidency will appear as nothing more than a tiny dip on the graph. The roughly 7% average annual growth of the (mostly US) stock market already includes events like the Great Depression, the Dot-Com bubble, the 2008 financial crisis, two world wars, and a global pandemic. If the US economy survived all that, I’m confident it will survive Trump too.
Putting your investments in one place and ignoring them for thirty years is certainly one investment method, but it’s a really good idea to rebalance every year or two to align with global trends and your investment goals.
Well, there I disagree. Aligning your portfolio with current global trends is precisely how many people flushed their savings down the drain when the dot-com bubble burst. Diversification is how you protect your investments against that sort of thing - and true diversification means spreading your investments across time, sectors, and geography. At least, that’s what you do if your goal is to make money, rather than a statement.
I’m diversified across many industries across the entire world with reduced exposure to the US. Comparing this to people losing their life savings in the dot com bubble leads me to think you don’t understand what I’m talking about.
I’m talking about reducing your exposure in a region of the world that looks certain to suffer a lag in economic growth for an extended period. Reducing your exposure in Europe during the start of the Euro Crisis in 2010 was a good idea, and I think reducing your exposure to the US for the near term is also a good idea. Keeping your investments steadfastly in one place without regard for the reality of the world around you is foolhardy. Moving your investments between mutual funds within your 401(k) or 403(b) costs you nothing