Alright, so you’re wondering what the new President might mean for the stock market, right? Most people don’t have stock portfolios that look like Bill Gates’ bank account, but about half of Americans have some stocks tucked into a 401(k) or retirement fund. That means changes in the stock market actually impact a lot of us! So, let’s break it down and see what might happen.
Here are Five Fast Facts on the Prez’s impact on the stock market:
- 🤔 How Much? - How much control does the President actually have over the US economy? Not much, at least in terms of control. It’s such a huge, complex machine that no one really controls it. Not even Elon Musk!
- ⏱️ And When? - Most of the effects of what any President does probably happens years down the road. So the sky isn’t falling…at least not yet! Grab your popcorn and blanket and settle in to watch (for a very long time).
- 📈 History Says - Historically speaking, the stock market has generally gone up for most Presidents. Political gridlock (meaning neither party controls the White House and both houses of Congress at the same time) also tends to be good for market increases. Apparently, the American people want less government "action"…
- 👍 No Really, How Much? - Control is too strong a word. But…the Prez does do a few things that can have an influence. The President sets the course of economic policy, and then appoints cabinet secretaries, trade reps, and the Federal Reserve Chairperson to help drive those policies forward. Minions!
- 😁 Happy Returns - For most Presidents, the market goes up by around 10% in the first year, 8% in the second year, 13% in the third year, and about 5% in election years. There are exceptions with recessions, wars, and other things outside of anyone’s control, but generally speaking markets improve no matter which President is in office. Sorry to burst your bubble, you Prez-hater, you!
🔥Bottom line: Whether Trump is your guy or not, the stock market will probably like him…just like it likes pretty much every President! So keep your shirt on, don’t panic, and keep your money in your current investments or retirement accounts. Odds are very good you’ll be much better off four years from now that way compared to pulling everything out and throwing it under your mattress.
Are you concerned about the markets under Trump?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
Btw, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
