With a new presidential election just around the corner, financial advisers are weighing the chances of Donald Trump securing the Republican nomination and winning a second term. Some advisers believe there is a good chance Trump will return. They recommend that clients take certain financial steps now to protect and increase President Trump’s assets should he return to the White House.
No one knows what the future holds, but having your finances prepared can help you weather the roller coaster that can come your way in the coming years. No matter who occupies the Oval Office, you can start strengthening your financial planning today.
Eligible stocks that benefit from tax reduction
Corporate taxes have been a focus of President Trump’s first term, and further tax cuts are likely in his second term.
“One of President Trump’s key moves in his last term was lowering the corporate tax rate from 35% to 21%,” said President Scott DePeralta. scott deperalta consulting. “This was a big change for a lot of companies. If you’re looking forward to Trump’s re-election, it’s going to be a big change for companies that could benefit from further tax cuts, or at least from keeping their current tax rates. It’s worth paying attention to.”
If President Trump lowers tax rates further, the stock prices of high-tax paying companies could rise.
Invest in banking and financial services stocks
During his first term, Trump took steps to ease financial regulations imposed after the 2008 financial crisis. If he is re-elected, he could further reduce oversight of banks and Wall Street.
“Trump has made no secret of his desire to repeal the Dodd-Frank Financial Reform Act,” Deperalta said. “If he can do this, we could witness significant deregulation of the financial sector. This could lead to a bull market for banks and other large financial institutions. If you like risk, these It may be best to invest in stocks.”
If President Trump succeeds in deregulation during his second term, banking and financial stocks could soar. This will benefit major companies such as JPMorgan, Wells Fargo, and Citigroup. However, care should be taken when pursuing this approach, as lower regulation increases risk overall.
invest in real estate
“Let’s not forget about President Trump’s own playground, real estate!” said Deperalta. “He’s a real estate mogul, and his policies have generally been favorable to this area. So if you’re predicting a Trump victory, put your money directly into real estate investment trusts (REITs) or real estate. It might be worth considering doing that.”
Given Mr. Trump’s extensive real estate background, it is reasonable to expect that policies aimed at stimulating the real estate market will continue. Real estate is an area that President Trump understands well, and he enacted policies favorable to the sector during his first term. If Trump’s support continues when he returns to office, investing in REITs and real estate could be profitable.
Remember that no one knows the future
“While we are talking about all these potential moves, I want to emphasize that they are purely speculative based on President Trump’s previous term and campaign promises,” Deperalta said. “Actual results could vary materially based on a variety of factors, including global economic conditions, ongoing legal battles, and specific policies enacted during his second term.”
Everything that is being discussed is speculation and what will actually happen is anyone’s guess. Such a move could make sense if trends from President Trump’s first term continue, but don’t bet too much on either scenario. The wisest thing to do is to stick to the principles of smart fundamental investing, no matter who is in the White House.
“This is my most important advice: Don’t put all your eggs in one basket,” Deperalta said. “No matter what the political climate is, diversifying your portfolio is always a wise choice. Also, political outcomes can be unpredictable, and drastic decisions can be made based solely on election results. Remember that making drastic changes may not be the best strategy.”
It makes sense to change tactics to match expected policies, but maintain balance and perspective. Don’t lose sight of your risk tolerance and long-term goals.
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