Your financial future has changed under President-Elect Donald Trump. In some ways good, in other ways not as good, but, honestly, in all of it we can only continue to guess to what the future holds.
Listen below to hear the latest More Than Money podcast as we look at the financial future you may face based on what Trump has repeatedly said.
Get a Full Summary of The Podcast and The 3 Ways You Can Expect Financial Change in Your Investment Planning
1. First... Why Have Stocks Risen Already?
Financial stocks have jumped up since Trump was named President Elect.
One BIG reason is that Trump promised to reverse some of the regulation on the financial services industry.
Wells Fargo stock jumped up 8%.
Yes... the same Wells Fargo that was caught in the HUGE scandal.
Why?... Because Trump wants to repeal Dodd-Frank.
This is going to transform the financial industry.
It makes sense we see a lot of stocks rising because of Trumps point to deregulate the financial sector.
BUT... On the flip side...
2. There is A Lot of Concern Internationally
Mostly, because a lot that is being said sounds similar to Brexit.
Trump wants to turn his focus more towards America, and how America can thrive independently. He has stated that he'll be sure trade deals benefit the USA more often and will take action to call out our partners and allies if they're in a deal that isn't most favorable to the U.S.
So, there is a question around American involvement in the international economy.
Where are you invested internationally? If you're not well diversified, you must pay attention to this.
3. You Should Expect Interest Rates To Rise
The FED has kept interest rates low by pouring trillions of dollars to help the economy grow.
Trump has spoken against the fed and says the nation needs to allow interest rates to naturally rise.
If interest rates rise in America while the rest of the world's interest rates continue to remain suppressed, it makes our bonds more attractive to people in other parts of the world.
As our bond's interest rates rise and more money begins to pour into them, their value will drop.
As interest rates begin to rise, bonds are no longer safe money.
But these are all projections. How do you practically respond?
Step Back and Look at Your Investment Plan
Will you be okay when bond rates change, when interest rates fluctuate, and international accounts react?
We don't know what's going to happen in the market over the next four years. But, if you have a plan with the power to respond to the market, you win despite the circumstances. Uncertainty is a time good investors thrive.
Are You Protecting Your Future and Your Family's Future?
I can show you how, if you would like. It's my joy to help others create plans that help them reach their dreams.