Let's say I have an investment portfolio with diversified US stocks and diversified US bonds. How would a dollar collapse affect this portfolio?

And which component of the portfolio is less likely to become worthless? I know bonds are generally considered safer than stocks, but it seems to me that owning companies would actually be safer than bonds in such a scenario since bonds are debt instruments of the collapsing currency. Not sure if I'm thinking about this the right way.

  • I assume that you mean major depreciation in the USD, rather than the collapse of the Federal Reserve System or the creditworthiness of the US Government.
    – base64
    May 28, 2020 at 10:14
  • For the sake of argument it would be interesting to consider both the case where USD hyperinflates and the case of sovereign debt default.
    – Max
    May 28, 2020 at 11:03
  • @Max Those seem like two very different questions. You should probably specify one here and ask the other separately.
    – glibdud
    May 28, 2020 at 11:40
  • Ok, let's go with the case of major depreciation as suggested by base64.
    – Max
    May 28, 2020 at 11:47


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