Will USA’s economy ever turn out like Japan’s economy where stocks never recovered?
Also, how likely is it if USA loses its spot with the reserve currency?
If ww3 happens, and IF USA isn’t a world power will the usa stocks tank?
Just some food for thought.
Ray Dalio is saying that currently there is a fight for world power… and that had me thinking…
What are your thoughts?
Those are great questions that a lot of people are contemplating right now. Let me preface the below by saying no one knows what the future will bring. I follow Ray Dalio’s work and love all of his content. The fight for global dominance is playing out over multiple decades or even centuries and not necessarily in the coming years.
Japan’s situation is somewhat unique. They have terrible demographics, which is bad for economic growth (they supposedly sell more diapers for old people than they do for babies!). They have almost zero immigration, which is also bad for growth. They have incredibly high debt (260% debt / GDP). The US has a debt problem too, but we are closer to 130% debt / GDP currently.
With all that said, will the US always be the dominant superpower? I have no idea. Probably not if you go far enough in the future. BUT, that’s why your investments should not be 100% concentrated in the US. You should have international exposure too. Then you won’t have to worry as much about which country will be the best going forward because you will own them already in your portfolio!