Election in the Rearview Mirror
The much-anticipated presidential election has concluded, with Donald Trump winning the US election and becoming only the second US president in history to serve non-consecutive terms. Following the election, equity markets have remained strong, reflecting the general market consensus that a continuation and expansion of policies from his first term will support higher domestic growth. Proposed economic policies, such as deregulation and the potential extension of previous tax cuts, are likely to take a backseat until the market gains greater clarity on tariffs, which were a major talking point during and after the election.
It remains to be seen whether tariffs will serve as a strategic tool to bring countries to the negotiating table, as they did during Trump’s previous term, or represent a new hardline stance on trade. Tariffs are generally considered to be not only inflationary but also a potential drag on US economic growth, and we will monitor developments in this area closely. As noted in our previous commentary on election cycles, we recommend that investors remain focused on their personal financial plans and long-term investment strategies, despite any market volatility that policy changes may provoke.
Information in this commentary is gleaned from third-party sources, and while believed to be reliable, is not independently verified. This content is not intended to be tax, legal, investment, or fiduciary advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Bernardo Wealth Planning recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. Past performance does not guarantee future results.