http://forum.lowyat.net/ Sun, 14 Jun 2026 09:29:08 +0800 FeedCreator 1.7.2 http://forum.lowyat.net/topic/5451128 Dear Sifus,<br /><br />I guess most of us grew up in a time where US is the absolute dominant power of the world and it has the most developed financial market, hence it makes good sense to shift most of your networth to USD denominated instruments. However, recent developments have got me thinking whether it is still a good strategy to keep USD in the long run. <br /><br />No doubt, the US hegemony is going to stay for at least another 5 years but what about the long term(more than a decade) perspective? To be honest, I have not expect to see the erosion of US dominance within my lifespan where US and its alliance struggle in the Gaza and Ukraine wars. The current us government debt to GDP stands at 124% and the yearly interest payments to those debts stand at about 2.4% of its GDP. To make things worse, it shows no sign of slowing down as US is struggling to bring this down due to high inflation and has chosen to go into a cold war with Russia and China.<br /><br />With the recent spike of USD and its bloated Stock market, I just dont see how this is sustainable. I am not an analyst but I am pretty sure it will come to a point where the instrument in US will become too expensive to invest and everything will crumble(including usd as my gut feeling is it is over-valued as most of US ecomonics/exports are virtual in nature, what real commodity is there for US to trade except shale oil and her overpriced software/services?). No doubt US can still continue to use &quot;the cheat code&quot; to print more money...but surely this is not going to help its inflation and we are also seeing a gradual decoupling of other countries&#39; trade from USD(most notably BRICS).<br />I have been hearing alot of people advocating putting most of your networth in S&amp;P 500 but I am not so sure whether it is still a sound strategy looking at how things have developed now. <br /><br /><br />I am not going into how the US citizens have also suffer due to the high interest and healthcare cost. But I just dont see how the current system is sustainable despite US government showing low unemployment data. Anyway, just want to hear about yout opinion as I am no macroeconomist. Thanks. MaJYun Finance, Business and Investment House Fri, 12 Apr 2024 08:00:39 +0800