Financial experts are weighing in on potential economic shifts as the presidential transition approaches. Of course, nobody knows for sure what’s coming, but experts have predictions as to how President-elect Donald Trump’s policies might affect the economy and your personal finances.
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Here’s what they see on the horizon when Trump takes office in January.
Market Confidence Shifts
While experts agree that the stock market will likely shift, they have differing predictions for how that will happen.
Thomas J. Brock, CFA and expert with Annuity.org, said, “Trump’s imminent presidency has ushered in a sense of confidence for our economy.”
However, Rodney Sullivan from the Darden School predicted “stock and bond market volatility in coming months, as markets work to sort through the fog.”
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Energy Market Swings
“Energy commodities could experience heightened levels of volatility,” Brock said, citing “speculation about shifts in energy and trade policies.”
This aligns with Reuters’ reporting that Trump plans to roll back green regulations and boost traditional energy sectors.
Supply Chain Shifts
Tim Heneveld, country director for Pergolux, believes in the importance of business adaptability.
“Uncertainty always comes with economic transitions,” he said. “Potential shifts in trade policies, manufacturing costs or interest rates could directly impact sourcing and operations.”
Businesses are preparing for anything and everything that could be headed their way.
Gold Market Changes
Brock said gold prices might decline with a possible strengthening of the U.S. dollar.
“Gold is a safe haven asset that does best when economic uncertainty is high and the U.S. dollar is weakening,” he explained.
Tariff Anticipation
Trump has proposed increasing tariffs on all imported goods, with the highest tariffs on Chinese imports.
According to Sullivan, these tariffs could bring “inflationary consequences.” He explained, “Retaliatory measures from trading partners could ignite a trade war.”
Remember: These are expert predictions, not guarantees. During times of transition, it’s important to stay engaged and adaptable — nobody knows for sure what’s coming for the economy, so approach an uncertain future with eyes wide open.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.