President Donald Trump was elected to shake things up—to do things differently. For better or worse, he’s been doing just that.
His unpredictability makes it hard to anticipate the direction the new administration will take on issues ranging from tax policy, financial regulation, international relations, open and free media, to the judiciary and other topics.
This creates uncertainty that surrounds the direction of the investment environment.
U.S. stock markets displayed their enthusiasm for the lower taxes, reduced regulation and increased infrastructure spending they expect from President Trump.
If enacted, these policies could be good for business and could put more money in the pockets of the nation’s citizens.
And yes, there could be costs to each, for the budget, for the environment and for citizenship rights.
The Labor Department recently announced that companies are continuing to hire at strong rates. If the trend continues, labor markets are likely to tighten and wages (and inflation) will probably rise.
Interest rates are set to be pushed up by the Fed and the global demand for the dollar. The increased strength of the dollar will eventually make it harder for U.S. firms to sell their products and services to buyers in other countries.
Higher tariffs the Trump administration may choose to impose will inevitably be matched by other countries, inhibiting world trade, an important engine for global economic growth.
How should investors be viewing this and what, if anything, should they be doing differently?
Here are a few things to keep in mind as we move forward.Read more...