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But with the 2024 presidential election approaching, theyre watching their portfolios like hawks.
While some experts see some potential benefits in a Donald Trump presidency, others raise concern.
GOBankingRates spoke to an expert about why hes worried for his stocksif Trump wins in November.
Inflationary Pressures
Several of Trumps proposed policies could contribute to inflationary pressures.
Many of Trumps stated policies are demonstrably inflationary, and could have long lasting effects, Termini said.
But this might not ease wage pressure or price inflation.
We could see higher prices in the face of declining GDP.
This is all to say: High inflation combined with slow economic growth is challenging for investors.
But the sugar high that might create would almost certainly lead to a prolonged period of inflation.
The Fed needs to operate independently to keep the economy stable over time.
This could lead to a cycle of rapid growth followed by sharp downturns.
This kind of economic instability makes it challenging for investors to plan and manage their portfolios effectively.
Exacerbated Business Cycles
The combination of these factors could lead tomore extreme business cycles.
The potential troughs could be deeper than normal, said Termini.
This means investors might face more frequent (and severe) market downturns.
The market is affected by many factors, including global events, technological breakthroughs and changes in consumer behavior.
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