Major changes are likely coming for the U.S. economy. Will you be ready for them?
We have a new president who’s pledged to overhaul the economy. How will that affect investors and the markets? Mark Biller joins us today with a plan for managing “anticipated disruption.”
Mark Biller is Executive Editor and Senior Portfolio Manager at Sound Mind Investing, an underwriter of Faith & Finance.
Before diving into predictions, it’s essential to recognize the value of reviewing recent market trends. Forecasting is often unreliable, so Sound Mind Investing focuses on building robust portfolios that can withstand a variety of market conditions.
Rather than predicting, SMI uses trend-following strategies, aligning portfolios with market behavior to enhance resilience against uncertainties.
Bull markets typically end due to two primary catalysts:
However, investors should remain prepared for routine market corrections (10-15%), which are typically short-lived and not worth major portfolio adjustments.
President Trump’s second term brings both optimism and uncertainty. Business-friendly policies like tax cuts and deregulation are expected to boost growth, but his stance on disrupting global free trade could create volatility.
Wall Street’s response will likely depend on how aggressively these policies are implemented. While markets thrive on stability, Trump’s approach could introduce significant fluctuations.
Reducing the national debt remains a pressing issue, but Mark is skeptical about achieving a balanced budget in the short term. Growth-driven strategies may help manage deficits, but cutting government spending poses immediate challenges for economic momentum.
With many moving parts, confidently predicting cumulative economic and market outcomes is impossible. However, investors should:
The focus should remain on steady progress toward financial goals rather than reacting to short-term disruptions.
For a deeper dive into these topics and actionable strategies, read Mark’s full article, “Trump 2.0: Using Objective Investing Models to Guide Us Through Anticipated Disruption.” This article offers a clear framework for understanding the potential market impacts of Trump’s second term while encouraging a disciplined investment approach.
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