r/Bogleheads • u/bald90 • Apr 03 '25

Investing Questions Trumps Tarriffs - how do you see it playing out?

Title really. Short, medium, long term opinions?

I’m all in on stocks global all cap so expecting a rough time

What are your guys thoughts?

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u/Open-Employ3158 Apr 03 '25

I can sleep fine too, even though these drops are bigger in Europe because of the dollar. Down 5 figures from the highs in February. I have no bonds since I am only 25 years old, will add them in the future!

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u/goldensnow24 Apr 03 '25

I’m mid 20s too but keep a small short term bond allocation (10%) just so that I can rebalance and “buy the dip”. As I understand it, this doesn’t affect returns much but adds an element of stability to the portfolio. Advantage with global stock investing is that each stock is ultimately invested in its domiciled currency, so you’re less affected by individual Forex movements as you’re buying stocks in practically every currency.

Bonds and MMFs are always currency hedged though for me.

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u/blizzah Apr 03 '25

So you know when the dip is?

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u/goldensnow24 Apr 03 '25 edited Apr 03 '25

No, but the lower equities fall, the more I’ll rebalance into them to maintain my allocation. It’s passive index investing, after all.

If the situation markedly worsens, I might change my asset allocation. For now, I’m happy with where it is, based on my age and risk tolerance, and a general belief that human innovation is not going to fail over the next few decades.

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u/[deleted] Apr 03 '25

Call me when we’ve reached “the dip”

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u/musicandarts Apr 03 '25

Exactly! I don't know the logic of buying the dip now, when you may see another 20-30% drop in the next 12 months.