By Edward Leone Jr. CFP RFC MBA DMD
Contact Information: 303-478-6793 edleonedds@gmail.com
The election of Donald Trump as President Elect has created much excitement and optimism within financial markets along with some elements of concern. American financial firms are looking forward to dismantling of some regulation and the raising of rates which will boost trading activity. Bank and insurers’ stocks are up significantly since the election. These industries are highly leveraged. Will the Trump agenda of lower tax rates and economic stimulus spark economic growth enough in the future to stimulate the rebounds expected in many industries including manufacturing? Will the US be able to improve on the current status of international trade imbalances? What about the potential for stricter trade policies?
The economy is improving at a very slow pace over an extended period of time. The 2016 third quarter showed some stronger statistics with GDP at 3.2% and consumer spending on an up swing. Could this all be due to the coming Holiday Season? The US dollar is strong in international currency markets making imports into the US cheaper, but making our exports more expensive.
If the inflation rate increases as central banks across the globe would desire, gold, silver and other precious metal prices will increase. A counter balance may be that precious metal prices decline as interest rates go up. As those interest rates go up, bond prices will go down. We are already seeing a slight trend in this direction. We will have to see what goes here just as with so many other economic issues?
It is projected that Generation X and Millennials will have $15 trillion in investable assets in the future. This trend may be due to improving economic opportunities, work ethic and inheritance trends. Hopefully these people will do the following:
- Be aggressive savers and engage an early start
- Practice aggressive budget discipline
- Target retirement savings at a minimum of 10 time final income levels
- Set financial goals
- Work longer into life
- Seek skilled financial help and advice.
In my recent reading, I learned of observations in Central and South America that the Zika virus is attributed to increases in the occurrence of Guillain-Barre syndrome. This should be another caution in our travel plans since this disease can be very serious.
On the brighter side of things, it is my wish that all of our readers will experience happiness and prosperity through this Holiday Season and in the New Year.
FOR THE RECORD:
DJIA 19,295.11
S&P 500 2,214.73
NASDAQ 5,330.70
SUGGESTED READING: “Prepper’s Long Term Survival Guide” By Jim Cobb
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