Say you had some money in cash rn, what should one do? Wait for a crash and buy stuff up cheap? Put it in some safe category?
This stuff is stressing me out and I do believe it's gonna come crashing down sooner or later, but I don't know enough about investments to know how to best come out unscathed.
Build a rainy day fund. Determine how much cash you will need if you are out of a job and how long you think that will last, allocate some portion of that amount into low risk bonds. Russ way if you need cash you aren’t selling investments at a big loss.
If you have enough liquidity put some in real estate as a forced savings vehicle as it’s harder to liquidate than stocks. Then just sit out any coming storm.
If we assume this takes down the US economy and bonds, what then? International bonds/stocks? Won't those also be too entangled? Precious metals?
Build your emergency fund first if you don't have one. 6-12 months of salary in cash or CDs. Then dollar-cost average into well diversified equities. Don't watch them day-to-day. You're concerned about their value in 20-30 years, not tomorrow.
Sure, spread investments across stocks and bonds and treasuries from different markets.
But you can also diversify more broadly beyond economic capital to cultural and social capital. Learn new skills and build networks of generalized reciprocity with others before you (or they) need help.
They said cash.