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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.

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  • 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 '20 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 '20 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 '20 at 11:40
  • Ok, let's go with the case of major depreciation as suggested by base64. – Max May 28 '20 at 11:47

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