Last week, a reader asked me a deceptively simple question: “How are ordinary people supposed to invest with so much economic uncertainty looming?” It’s a fair concern—and one I think about every day.
There is no shortage of potential triggers. The federal debt is rising at an exponential pace. Foreign governments are slowly diversifying away from the U.S. dollar. Those trends won’t cause an overnight collapse, but they will eventually put pressure on the dollar and, by extension, on household budgets.
We cannot individually fix federal policy or global economics, but we can make rational, protective decisions about our own finances. A reckoning does not equal disaster, but it does require preparation.
This post originally appeared at Investing Daily.