If the US collapses what happens to stock ownership?

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noob_trad3r

Lets say you own 25,000 shares of GE, 15,000 shares of PG

The US government collapses and dollar is worthless.

Do shares become worthless? or the HQs move to switzerland etc.. and factories since most are in china/mexico that your stock ownership is still good?

since the US is gone does not mean private companies will not?

So if you just have the share certificates in suitcase and move out to europe all is good?
 
Quote from noob_trad3r:

Lets say you own 25,000 shares of GE, 15,000 shares of PG

The US government collapses and dollar is worthless.

Do shares become worthless? or the HQs move to switzerland etc.. and factories since most are in china/mexico that your stock ownership is still good?

since the US is gone does not mean private companies will not?

So if you just have the share certificates in suitcase and move out to europe all is good?
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If that happens I would be less worried about stocks and more worried about zombies and radioactive fallout.
 
Quote from Ivanovich:

It's all priced in worthless USDs.
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but stock represents ownership so if a new currency arrives, it would just be priced in that currency and pay dividends in the new currency?
 
Quote from noob_trad3r:

but stock represents ownership so if a new currency arrives, it would just be priced in that currency and pay dividends in the new currency?
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Yes.
 
Somehow I doubt it would be that easy. I have a feeling that there'd be a conversion to the new currency, and the stock price would be converted to that rate.

So if one "new dollar" was equal to ten old ones, and the stock price was 50, you'd get 5.
 
Quote from Ivanovich:

Somehow I doubt it would be that easy. I have a feeling that there'd be a conversion to the new currency, and the stock price would be converted to that rate.

So if one "new dollar" was equal to ten old ones, and the stock price was 50, you'd get 5.
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Maybe, but the conversion rate is almost meaningless. The market will soon move to a price near the 'true' value of the stock.

There is indeed a historic example for this: The currency reform after the 1920s hyperinflation in Germany.
 
This is very simple....

For example....


In 2002, the Argentine peso collapsed....

The apartments in Buenos Aires could be
bought for 1/4 to 1/3 in dollars because the ratio stood firm for a while....

Thus real estate was cheap for a while for dollar holders....and then gradually adjusted....

This is just another reason why investing worldwide is very interesting....

One considers both the asset and the currency...

ie Inbev buying Budweiser....very favorable relative to recent history regarding the currency ratios....and chief corp domicile....

This story particularly applies to the Chinese currency....One thinks that the Chinese would simply lose because of dollar devaluation.....however they own their own currency ...and would gain on dollar priced assets via their own currency favorable ratios....

Quite a balancing act....
 
I was thinking of germany when I posted this.

I figure if a new UN one government comes, obviously the bankers and multinational conglomerates etc are owned by the same folks working the strings behind the scene are not gonna shoot themselves in the foot.


Just fill your suitcase with your stock certificates and get out before its too late etc..
 
If the US rule of law doesn't collapse along with the dollar you would be still entitled to dividends in the stock with the worthless currency
 
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