I hope you had a great weekend! Welcome to the world of President Trump!
LRPC’s Monday Morning Minute for this week, “Trump Shocker: Five Likely Changes Coming Soon” (presented below) comes to you courtesy of American Funds. As an independent, objective Registered Investment Advisory firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share enlightening, useful information with you each week. If you are short on time, try to take a look at each of the five major headings below.
Did you wake up on Wednesday morning and expect to hear “President-Elect Trump?” At least half of the country didn’t! What might be on President Trump’s initial agenda? Read on below to see what the experts from American Funds believe President Trump will tackle first.
Have a wonderful week!
Trump Shocker: Five Likely Changes Coming Soon
By: Matt Miller, American Funds
In this historic victory that shocked the political establishment and global financial markets alike, Donald J. Trump will become the 45th president of the United States.
In an uncanny echo of the Brexit outcome, millions of Americans frustrated with the country’s direction voted against the perceived status quo in the world’s wealthiest and most powerful democracy. Yet lack of clarity on how the president-elect actually will govern poses both risks and opportunities for investors.
Republican candidate Trump beat his Democratic opponent Hillary Clinton by a notable margin. Global stock markets were volatile, falling in Asia and then rallying in the U.S. on the view that Republican fiscal policies could provide meaningful stimulus to the economy. U.S. Treasuries slipped, the dollar was mixed against major currencies and gold rallied.
Now investors and international leaders must take his measure, and Americans will adjust to the style and tone of a self-proclaimed outsider in the White House. However, the Republican majority in both the House and the Senate means Trump stands a good chance of enacting much of his economic agenda. He could do that via the so-called budget reconciliation process, under which tax and spending changes can pass with a mere majority of the Senate, not 60 votes. Investors now spooked by Trump’s election may find themselves surprised next summer by the economic stimulus Trump’s Washington enacts.
While we expect market volatility to continue as investors adjust to the reality of a new balance of power in Washington, here are five key areas in which policy decisions could have an economic impact. [Read more…]