Investors preparing for Trump 2.0 know two things: First, the new administration will be pursuing his “Make America Great Again” agenda and second, that agenda could affect your wallet.
The Republican victor is poised to unleash a fresh round of policies — tariffs, tax cuts and immigration crackdowns — to boost economic growth and shield the nation from an influx of low-cost, imported goods and workers.
Depending on their severity, these policies could result in higher prices for consumers and a resurgence of the inflation the Federal Reserve has been battling since 2021.
Stocks surged the day after his victory, with the S&P 500 climbing more than 2% on his business-friendly agenda, including deregulation and activist industrial policy.
No such cheer was evident in fixed income, as 10-year Treasury yields spiked toward 4.5% amid anticipation that a swelling deficit under Trump will force the government to pay up for borrowing.
“Stocks have the wind at their back for now, but equities will be keeping a close eye on yields,” Adam Crisafulli, founder of market intelligence firm Vital Knowledge, told Bloomberg. “And if the Treasury slump continues, that will short circuit the Trump equity celebration.”
So what’s an investor to do? Here are two ideas.
1. Get an inflation hedge
One of the best ways to protect your savings is having money in different types of investments: ideally, ones that can go up when others are going down. For example, stocks tend to do poorly when inflation and interest rates are rising and/or there’s political turmoil brewing.
One investment that thrives in this scenario: gold. Not too much…most experts recommend you never put more than 15% of your long-term assets into gold.
Also keep in mind that not everyone in the gold business is on the up-and-up. Be careful who you deal with.
Preserve Gold is a family-owned company committed to helping investors protect their wealth and retirement with physical precious metals. They offer gold, silver, platinum and palladium coins and bars delivered directly to your home. Plus, enjoy up to $25,000 in complimentary gold and silver, along with waived IRA storage fees for up to 5 years!
They also lead the industry in retirement account rollovers and will help to facilitate a transfer from your current custodian into a precious metals IRA.
Preserve Gold will beat any competitor’s price on gold and silver, and offers fast, free, insured shipping. And once you’re a client, they’ll buy back your metals and charge no fees.
Gold has been hitting record highs. Take a look and see what you think.?
2. Get a second set of expert eyes
Navigating the stock market could be getting trickier. Maybe it’s time to at least talk to a professional.
The stock market A Vanguard study found that, on average, a hypothetical $500,000 investment over 25 years would grow to $1.7 million if you manage it yourself, but more than $3.4 million if you work with a financial advisor. That’s twice as much!
Even if you don’t want help picking investments, an advisor can help lower your tax burden, create a comprehensive financial plan, maximize your Social Security, help with estate planning and making sure you’re on the right track. They can also be there in case one day, you’re not.
If you’ve got at least $100,000 in investments, check out a free service called SmartAsset. You fill out a short questionnaire and instantly get matched with up to three vetted financial advisors in your area, all legally bound to work in your best interests.
Using SmartAsset only takes a few minutes, and in most cases you’ll be offered a free consultation.
Nothing to lose and lots to potentially gain. Take a minute and check it out.
Please carefully review the methodologies employed in the Vanguard white paper, “Putting a value on your value: Quantifying Vanguard Advisor’s Alpha.”
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