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Homrich Berg chief investment officer Stephanie Lang joins Market Domination to discuss stock market (^DJI, ^IXIC, ^GSPC) outlooks as President Trump begins his second term.
"The news today was really that Trump didn't come out with a bang with these executive orders and really surprise the market with inflationary pressures that weren't expected," Lang tells Yahoo Finance, adding that investors can "breathe a sigh of relief."
Lang notes that markets are currently in "a good spot," citing positive economic indicators, including strong employment and GDP growth (gross domestic product). However, she cautions that higher interest rates and renewed inflation could "really derail that," particularly given the economy's current strength.
Lang characterizes Trump's potential policies as "a wildcard" for Federal Reserve decision-making, putting markets in "wait-and-see mode."
For investment strategy, she recommends maintaining a "full allocation" in equities while also holding short-term fixed-income positions.
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This post was written by Angel Smith