The election is over! Yet the financial ramifications have just begun.
Is Wall Street the solution?
Who wants to depend on this as to their solution?
I know a lot of people who are losing sleep over what will happen to their money next.
And of course, I’m getting the reports that those of you who are clients are sleeping as well as ever.
What is that worth to you? Peace of mind.
Let’s take a deeper look at what the 2016 presidential results mean for your finances:
“Upsets” are not usually celebrated on Wall Street.
Investors like predictability, and so far, Trump’s surprise victory has shown us that the market is as fickle as it ever could be.
The evening of the election, at around 8:00pm Eastern time, investors started to figure out a Trump victory was likely. The DOW, Nasdaq and S&P futures all nosedived, with the latter two automatically halting trades until the morning.
One Hedge Fund manager implied Americans can kiss their 401(k)s goodbye. And Mexico, a frequent target of Trump’s criticism, saw their currency drop to an all-time low.
Yet, the next day, the market saw a swing back up again.
How can we feel comfortable about what’s coming down the pike in the next year, as Trump gets into office and starts making changes that will inevitably make many people feel unsure about their assets?
The Bigger Picture
To measure market reactions over the long-term, we will need to see how Trump will move forward with some of his policies that seem more economically risky. For instance, how Donald deals with the North American Free Trade Agreement could either stabilize the market or jar it again.
Also, if the Bank of England is any indicator on economic political strategy in America, Janet Yellen and the Federal Reserve may decide not to raise interest rates in December to maintain “calm” within the economy.
That will mean interest rates will have been near zero for 8 years and counting. And that means there’s a lot of cheap money out there keeping the economy afloat, for the moment, lulling many into a false idea of economic security.
An article on Forbes yesterday by Rob Berger sites my biggest concerns currently:
“We’ve enjoyed an economic expansion for nearly eight years. While it hasn’t always felt like an expansion, our economy has and continues to grow. The good times will end. Expansions don’t last forever. I suspect the expansion will end sometime in the next four years. I would have suspected the same thing under a President Clinton.”
In this 8 year growth period, we have gotten used to low interest rates – there is no time like the present to plan ahead for that interest-rate climb.
And while rates are low today, we don’t know what they’ll be like 3 years from now. If we hit interest rates anywhere close to what we saw in the ’80s, those who haven’t planned ahead will do anything they can to avoid taking out a loan, be it business or personal.
Yet another potential issue cured by cash flow banking.
(Is this sinking in?)
(Are you really getting it?)
Instead of investing in the stock market, which falls victim to current events you can’t control, or banking on low interest loans which are due to rise in the future, I have and will continue to recommend investing in yourself and keeping your money where you know it will be:
c) and liquid.
The stock market will go up and down as Trump makes his decisions about whatever motions will roll out in the next few years, but no one needs to be at the mercy of the stock market to retire on time.
After years of riding the stock market waves personally and seeing so many others do the same, and losing massive amounts of money, I’m confident I’ve got it right this time.
I’m happy about where I’ve put my money and I don’t intend to change a thing.
If this is not you and you want it to be, ask how, today.
Want to learn more about how to stabilize and control your money, your life and your happiness? Start a conversation with us at http://2020personalbankingsystem.com/.