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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Personal Finance / Macroeconomic Trends & Risks
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Author: weatherman   😊 😞
Number: of 4460 
Subject: Re: Krugman: Gaming Out a Sudden Stop
Date: 05/23/25 7:43 PM
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back to the original query :

in general, foreign equities earning mostly in non-dollars would theoretically the most frictionless way to address the concerns.
but you would be fighting a long history of how much the global economy is coupled\owned by america, and thus foreign equity correlated to american equity.

"When U.S. equities experience a major drawdown, American investors tend to withdraw funds from stocks and move them into safer assets. But they typically reduce their exposure to foreign equities as well."
reuters.com - European equities wont provide safety if US bubble bursts klement

so, options exist, but in general you have to assume lower than prior historical risks (per your geographic preferences) after a global drawdown results in a much larger than normal margin-of-safety.

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