In my last video I talked about the possibility of a USD drop or collapse. In this video “Dollar Collapse – What to invest in?” I go over some of the possible scenarios from a larger drop to a complete collapse and what to in invest in within these scenarios.
https://www.statista.com/chart/11619/the-us-companies-with-the-highest-overseas-earnings/
https://insight.factset.com/sp-500-companies-with-more-global-exposure-report-near-10-earnings-decline-in-q3
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As a high school student trying to invest early, which option would be the best given the direction things seem to be headed? I was hoping to start investing in index funds like VTSAX or FSKAX early, but I'm not so sure that would be a good idea anymore.
Interesting video and I do agree with a lot of your points and views. I do take a slight exception to the underlining political message hidden within it but that is also your opinion and you are welcome to make it. I would think that an opinion of that nature would not be included in this sort of video but you have. Disappointing to be sure.
Land, property would get taxed even more, I would think. And the government would just raise taxes on crypto profits.
great video, thanks for sharing!
Actually, Hans, the bad is the worst and the ugly the most harmless, if referring to the movie. 😉
Thank you for another interesting video. A video about how you hedge would be very interesting.
Again a very interesting video from you Hans. It would be great with a video as to how to hedge USD investments from a European perspective. Thks again.
This has been something that had been talked about for a while (20+ years?), but as you said for long term investors, we need to keep reminding ourselves so we don't get blindsided, or dismissive that this could never happen. This is one reason (maybe the biggest?) that Gold has been on such a run since 2000.
I think historically gold has gone up mostly as a hedge against inflation. But in 2000 and even more in 2008 (when inflation was not an issue) , it seems to be more of a hedge against a dollar collapse. I remember in 2008 a lot of people were saying 'only buy physical gold, not ETFs'. If I remember correctly getting physical gold at one point was very difficult and as a retail investor you could have to pay quite a bit above the spot gold price.
So anyone reading this who wants to buy physical gold, you might want to start sooner rather than later.
Thanks a lot (again).
What a great video Hans. There is no way in my opinion that the 'Good' scenario will happen. The Fed can NOT reverse it's printing and helicopter money policies for a risk of a total revolution in the USA. The social unrest is at levels that it can easily get out of control and the only way to perhaps keep it in check at this point is with printing to oblivion. It won't stop. It's either gonna be the Bad or the Ugly scenarios. I think it'll be the Bad scenario in the next few years, but it may get to the Ugly one. I think China and Russia are the key. If they will be able to break the Petro Dollar by creating a strong coalition of their own then it's game over to the USA, exactly like you said. But I wouldn't necessarily know if they can create a stable coalition. Europe will be key as well and I don't see them joining China/Russia too quickly. Either way, the Bad scenario will be really bad to the USA and we can already see it all over that country.
The cryptocurrency market started seeing astounding growth in 2017 and since then, the number of cryptocurrencies has risen dramatically. This has made it tremendously difficult to keep up with new crypto projects and thus, it has impacted the ability of investors to decide which of these tokens are worthy to invest in. On the other hand, investor sentiment in the crypto space is still maintaining momentum, regardless of the enormous challenges that 2020 has brought. So for now you can only make a profit by trading. For me i advise you multiply the little you have with Mr Christopher’s strategy, I was able to make 7btc with 1.2btc in 3 weeks with the same strategy, reach him on telgrm Christrade15 .We'll definitely see another huge Bull Run again in the near future, it's just so hard to know exactly when it will happen.
I see a fragmented world coming, the US dont need to import stuff really, they are self sustaining in everything or if they want something they have the naval power to take it. They will decline but so will the rest of the world, I think we need to get used to an "a-polar world".
What happens to the rest of the world? This is my best case scenario:
The US weakens by a lot but remains a self sufficient nation, with the strongest military in the world but no longer an empire. They simply draw back from the world and stay content with knocking down others from taking the nr 1 spot in military power and call it a day.
The EU is a dead man walking, Brexit started to the process and I think Italexit or Frexit will be coming next, either way the EU as we know it is done for within a decade or so.
China falls no matter what, their neighbours hate them and they cannot self sustain, they cant even feed their own population (without massive imports) and they need to import most of their raw materials such as oil and metals. China needs full employment and with a weakened US consumer base and hostility that wont happen, forget belt and road, they are most likely done. There's a reason Xi made him self dictator for life, he sees very bumpy roads ahead and the survival of the CCP is all he cares about.
Japan is high tech but has even worse demographics then China and the EU (and that is saying something), their plan is automation and production plants in countries with healthy demographics.
Britain is a mess, their only hope is to go begging in Washington for a trade deal.
Russia has terminal demographics, they are dying quite litterally. Decent military but nothing else. They decide not to invade the Baltic states (it would give them easier geography to defend with their declining manpower).
India could be something but thats waaay of in the future and even then its a big IF.
Most of the asian nations will have their hands full beating down the chinese.
Sout America and Africa? Naah not this century at least…
In conclusion the best we can hope for is a weakened world with the US still as number one in terms of strength (their geography and demographics all but ensures it, ofc they can screw it up but hey theres no guarantees in life)…..remember what the world looked like before the US order with them policing the world seas…it was a bloody mess with regional powers constantly trying to kill each other and fighting for resources. We will most likely go back to that world if the US falls because I see no realistic replacement.
Or in the worst case we will see a real war between the US and China within a decade (could spark over a number of reasons, China invading Taiwan or some such). Then we would have a world war with China obliterated much worse then nazi Germany and the rest of the world will be a mess (if there even is a world left depending on how many nukes are used)….or if the americans are smart they choke of Chinas supply chains with their superior navy and call it a day.
Bitcoin seems like the best, most future proof option – when it comes to value preservation. Not necessarily as a means of transactions, but there are other emerging intermediaries to make that available cheaply, at scale.