Best Investment Right Now: Stocks, Bonds or Cash?

Summary

Ben Carlson and Duncan Hill answer audience questions on preparing for a government debt crisis, choosing between stocks, bonds and cash, international stock allocation, where to park short-term savings, handling midlife portfolio swings, and how lifelong savers can learn to spend in retirement. Ben argues a US government debt crisis is unlikely because Treasuries and the dollar have no substitute, but outlines borrowing and shorting the dollar as the hedge if he is wrong. The conversation favors a global market-cap baseline for international diversification, notes AI-driven strength in South Korea and Taiwan, and recommends simple cash vehicles without yield chasing.

• Ben sees no substitute for US Treasuries and the dollar, making a government debt crisis unlikely.
• If a debt crisis occurred, Ben says the true hedge is to borrow fixed debt and effectively short the US dollar.
• In the stocks-bonds-cash choice, Ben would take cash for optionality, while bonds offer around 5% yield.
• Ben uses VT's global market-cap allocation of roughly 65% US and 35% international as a diversification baseline.
• Duncan highlights emerging and frontier markets as high-risk, high-reward early-stage exposure.
• South Korea and Taiwan are called out as AI buildout winners within international markets.
• For cash reserves, Ben says most short-term vehicles yield 3.5-4% and investors should avoid chasing teaser rates.
• Retirement spending advice focuses on turning money into family memories rather than maximizing inheritance.