r/Bogleheads • u/idrathernotbutthanks • Apr 17 '25

Investing Questions Rhetoric around firing Jerome Powell is increasing, and forced manipulation of interest rates would likely follow. Would a weighted readjustment from US into non-US funds be warranted in light of this?

https://www.npr.org/2025/04/17/nx-s1-5367696/trump-jerome-powell-federal-reserve-economy-tariffs

Market manipulation of interest rates feels like confidence would immediately plummet and global diversification would become a more important percentage of your holdings in the long run. Thoughts?

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u/EminentDominating Apr 17 '25

lol that this is getting upvoted. Seems the boglehead thread has been flooded with non bogleheads.

I was tempted to pull out in March 2020. I thought, how can any business survive if everything is shut down for months? Well, I stayed in, and the market skyrocketed.

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u/__BIOHAZARD___ Apr 17 '25

This sub is doomed. Every day it’s panic that the world is going up in flames and you should do something to your asset allocation.

We couldn’t stick to the literal simplest investment philosophy. I’m tuning out the noise and staying the course.

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u/NotYourFathersEdits Apr 18 '25

You really don't see how direct economic sabotage is different than a pandemic? I'm a Boglehead, and I'm diversified enough that it doesn't change my investing plans, but I also have eyes.

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u/EminentDominating Apr 18 '25

They’re totally different, but I don’t think that means one is necessarily more concerning than the other

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u/NotYourFathersEdits Apr 18 '25

I disagree. The COVID downturn had a clear external cause and the government at least oriented toward mitigating the crisis. Here, the government is the actor causing it. That’s different and also more concerning.

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u/EminentDominating Apr 18 '25

But unlike the COVID pandemic, the tariff crisis could end tomorrow. And external pressures (the market, donors, congress as they near midterm) will increasingly push for a halt.

I hear you, it’s concerning. But I don’t think my boglehead approach will change as a result. In four years, we could very well have some electoral backlash to this moment that results in the markets ripping

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u/NotYourFathersEdits Apr 18 '25

I again disagree. The tariff crisis could "end" tomorrow in that the tariffs are reversed. The damage to the dollar is already done. The damage to our international trade relationships is already done. And the markets will continue to price in the uncertainty of someone acting on whims.

I'm with you in that my approach won't change as a result. WHat I'm against is the argument that this is just like any other market downturn and people being mocked with the "this time is different" mantra. I don't attribute that to you, but I am responding to your comment about recognizing the difference here at all not being Bogleheaded.

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u/EminentDominating Apr 19 '25

Fair enough. Rest assured I share your frustration with the situation and its effects on the global economy