THE FINANCIAL COMMUTE

How The Election Impacts Your Investments | The Financial Commute (Ep. 110)

Chris Galeski Season 1 Episode 110

On this week’s special episode of THE FINANCIAL COMMUTE, CEO Jeff Sarti and Chief Investment Officer Meghan Pinchuk discuss how the election’s results may impact the economy, investors, and consumers. 

Here are some key takeaways from their conversation:

- The morning after the election, stocks saw a 2.5% increase, partially due to market relief from avoiding election uncertainty.

-  Anticipated Republican policies, like tax cuts and reduced regulation, may be favorable for businesses and the stock market.

-  However, Trump’s goal of instituting high tariffs on imports, particularly from China, could lead to more inflation by increasing consumer prices. 

-  In addition, Trump’s goals around border policy and immigration may further exacerbate inflation by pushing up labor costs. These inflationary pressures, coupled with potentially higher interest rates, may be a headwind for stocks.

- If higher inflation and interest rates do take hold, Meghan discusses the benefits of continuing with our existing exposure to gold, real estate and private lending.

-  Jeff and Meghan also highlight rising national debt levels, which will continue to increase as yearly deficits will likely stay elevated under a Trump administration. Real assets and gold can be hedges in your portfolio against negative effects of high national debt.