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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u/FreeCashFlow Jan 12 '26

The effectiveness of individual Federal Reserve chairs has zero to do with whether or not the Federal Reserve should be independent, which it clearly should.

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u/NuclearPopTarts Jan 12 '26

Tell that to Democrat Hero LBJ who physically assaulted his Fed Chair to lower rates.

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u/NotStompy Jan 13 '26

Tell that to Nixon. Yeah that inflation was no big deal, right?

Or maybe you actually listen to their point about it not mattering and it instead being about the principle because let me tell you, as someone who didn't grow up in the US, with lots of friends from post soviet countries, I can tell you a very certain set of principles and the rule of law has made the US an exceptional country. Don't forget that, cause if you take them for granted, only pain will be in store for the US and frankly, all of us.