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It can’t be good that we are p-o’ing are trading partners, and casting doubt among our treaty/alliance partners. As another thread on this board said, Europe is making plans that don’t include the US. Again, that’s gonna hurt us.
I don’t pretend to know all the effects from this. “Goodwill” and trust are a big part of international relations, both military and economic. Lose that, and the effects cannot be good.
And this is a self-inflicted wound. It is all so needless, and pointless.
As I don’t know what fallout will occur, I also don’t know how to position myself. Cash? Index funds aren’t really safe if the entire market gets shocked. Maybe international funds? I do have some of those.
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I’ve been trying to figure that out as well. In rough numbers my IRA is:
60% equities, 40% bonds/cash/gold/etc.
33% of the total is foreign, most of that in $VGK, some in $BNDX.
My $GLD position is about 5% and I count as “bonds”. My “bonds” allocation is a mix of Treasuries (8 months is the longest maturity), money market, $BND and $BNDX. Overall, $VGK is 28% of my IRA, so very close to half my total equity exposure.
I have been considering an even larger exposure to VGK, and less to VOO and VFMV.
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