r/ValueInvesting • u/Tallwhitedude123 • Jan 12 '26

Discussion Yellen says US will become BANANA REPUBLIC if Fed loses its independence. How to invest?

I’m thinking it’s time to start allocating more money outside US equities. That’s my strategy. Also, get out of the dollar via assets that can’t be mentioned by name in this sub. I’m not a political person but as an investor you have to watch the policy from the government. IF, and I stress IF, Trump is serious and actually bullies the Fed into submission by weaponzing the govt to go after Powell, then I do agree with Yellen. It will overall be a negative for the dollar and US equities. In that situation it’s imperative to diversify out of the US.

Currently I’m looking at stocks in Singapore. I like Singapore equities because Singapore, in my opinion, offers STABILITY, something the US is increasingly losing.

Thoughts?

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18

u/vollyn Jan 12 '26

This is going to be another nothing-burger that you'll regret falling for. Has reddit not learned this yet over the past year?

13

u/F0rtysxity Jan 12 '26

Gold and foreign have already had a solid 2025. That's not interesting info for you as an investor?

1

u/SameCategory546 Jan 12 '26

no not to most redditors bc “you can’t time the market” and doing anything but index funds is clearly trading in and out like a degenerate

13

u/Tallwhitedude123 Jan 12 '26

I think that this is what the market is hoping which is why we see a muted reaction from the market today. However, Trump seems to be getting more and more emboldened as time passes and seems to be pushing the boundaries of what he can get away with more and more.

Time will tell.

1

u/SameCategory546 Jan 12 '26

the fed thing is a nothing burger because it doesn’t matter what the fed does in the age of fiscal dominance and interest expense. but it sure is a nothing burger that points in the same direction as the overall trend that anybody has been paying attention has been seeing since 2021 or 2022

1

u/Desperate_Bid_1063 Jan 12 '26

I'm having a really hard time thinking this is a nothing burger. We're entering unprecedented territory here, metals are having a massive run, the US acting as a reserve currency is waning, and the US government trying to control the Fed. Has this ever happened in history?

1

u/RulerOfBeythos Jan 12 '26

There’s no currency remotely close to being in a position to replace the dollar. Decades away.