It is not clear to me why anyone should continue to own U.S. assets. Yes, U.S. capital markets are deep, and many American companies are exceptional, but the political risk assumed by owning American assets today outweighs the benefit of participating in an economy governed by a mad king with no apparent restraints or accountability of any kind.
At this point, any person or entity investing in the U.S. is directly (U.S. Treasuries) or indirectly (U.S. private assets) enabling the Trump regime to inflict incalculable damage on the world order, not to mention running the risk of having their assets confiscated or stranded due to some flimsy political or security excuse.
Countries not subject to the rule of law, such as the United States,.represent a clear and imminent danger to all those exposed to them. As such, investing in the United States today is both more morally questionable and more financially irresponsible.
What guarantee do Canadian or European investors have today that their U.S. stock or bond holdings won’t be subject to severe taxation by executive order? Think “Greenland Security Reparations”? Or a “North America Golden Dome Funding Charge”? Anything is possible when the individual in charge is unhinged and faces no apparent democratic oversight.
Meanwhile, I would think twice about owning gold or silver in the U.S. today. Should the U.S. dollar continue to weaken and these hard assets continue to rally, Trump may deem their ascent an affront to the supremacy of the U.S. dollar and outlaw private ownership. And don’t think this hasn’t happened before (see Franklin D. Roosevelt’s Executive Order 6102).
Finally, with Trump turning the U.S. into a global pariah, what do you think will happen to U.S. companies’ sales abroad over time? Consumers and governments around the world will undoubtedly increasingly shun U.S. technology (to the extent possible) and U.S. consumer and industrial products and services in favor of national or other non-U.S. alternatives. And with over 40% of S&P 500 companies’ revenues coming from international markets, the hit to their bottom lines will be felt.
I, for one, sold my last U.S. stock in Q4 last year. I recommend that you do the same.