A diplomatic passport from a third-world country? ;-)
Seriously, if the stock market is going to plunge, Pepsi stock is also going to plunge. The simplest way to reduce your exposure to the stock market is to shift assets toward cash: sell shares, keep dollars, maybe in the money market rather than just as cash. Dollars are exposed to the risk of inflation (hyperinflation hasn't happened yet in the US but it's so common that https://en.wikipedia.org/wiki/Hyperinflation doesn't even attempt to list all historical episodes of hyperinflation, just dozens of notable ones) so investors commonly try to move to metals to balance that risk. Cryptocurrencies have emerged as an alternative, and they have the advantage of being more portable in emergency evacuation situations.
One can't time the market, though. Every time in the past, where I thought to myself, "I should diversify away from the US stock market," when I looked back and did the math, I would have lost more money doing that than leaving it invested. The only way I would have come out ahead was if I sold everything the exact right month in 2000, the exact right month in 2008, and the exact right month in 2020. Who knows in advance what that correct month is?
I wonder what would be a good counter-investment if one thinks AI is in a bubble which is just about to burst.
Maybe consumer staples (Walmart, Pepsi etc.)? Dollar stores?
A diplomatic passport from a third-world country? ;-)
Seriously, if the stock market is going to plunge, Pepsi stock is also going to plunge. The simplest way to reduce your exposure to the stock market is to shift assets toward cash: sell shares, keep dollars, maybe in the money market rather than just as cash. Dollars are exposed to the risk of inflation (hyperinflation hasn't happened yet in the US but it's so common that https://en.wikipedia.org/wiki/Hyperinflation doesn't even attempt to list all historical episodes of hyperinflation, just dozens of notable ones) so investors commonly try to move to metals to balance that risk. Cryptocurrencies have emerged as an alternative, and they have the advantage of being more portable in emergency evacuation situations.
> Cryptocurrencies have emerged as an alternative, and they have the advantage of being more portable in emergency evacuation situations.
God help us if Crypto is our backup.
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One can't time the market, though. Every time in the past, where I thought to myself, "I should diversify away from the US stock market," when I looked back and did the math, I would have lost more money doing that than leaving it invested. The only way I would have come out ahead was if I sold everything the exact right month in 2000, the exact right month in 2008, and the exact right month in 2020. Who knows in advance what that correct month is?
2 replies →