Beginning on January 20, 2025, Donald Trump is now the forty seventh President of america, this time with JD Vance as his Vice President. Let’s dive into what this new Trump presidency may imply in your funds.
The failed assassination try on Trump was a sobering reminder of how fragile life is, underscoring that unity and shared values ought to matter greater than political divisions. I hope each events come collectively to heal and strengthen the American spirit.
As traders, sustaining a relaxed, rational method is important. Feelings can simply cloud judgment and result in suboptimal choices. Now’s the time to assume strategically about what coverage modifications may imply for portfolios and monetary plans.
What A Trump Presidency Means For Your Funds
Typically, the Republican Occasion is for smaller authorities, decrease taxes, and fewer regulation. The results of these insurance policies could possibly be an elevated finances deficit and inflationary. Nevertheless, the overall view from an investor’s perspective is that Republican insurance policies are a web optimistic in your funds.
Right here’s what you can see occur now that Trump/Vance group has gained. In case you take a look at historical past, shares and actual property typically go up whoever is in energy.
1) A Potential Soften-Up within the Inventory Market
Regardless of a unprecedented rise within the S&P 500 since October 2022, a Trump presidency could add gasoline to the hearth. Consequently, if there’s a time to be greedier when others are already grasping, it could possibly be now.
Buyers will get excited in regards to the continuation of the prevailing flat 21% federal company tax price or a possible lower within the tax price. Since January 1, 2018, the nominal federal company tax price in america has been a flat 21% following the passage of the Tax Cuts and Jobs Act of 2017. The TJJA may get prolonged past 2025 now.
With a decrease concern for greater tax charges, companies will logically put aside much less cash for future tax hikes and spend extra to develop their companies, which incorporates hiring. With probably decrease company tax charges, companies will be capable of increase their earnings, reducing their valuations, and rising their dividend payouts.
The factor with investing is that potential optimistic catalysts don’t need to occur for shares to go up. It’s the hope and chance of a possible catalyst that may assist bid up inventory costs.
Consequently, regardless of excessive valuations within the S&P 500 and different inventory indices, you in all probability wish to maintain on and proceed dollar-cost averaging. Anticipate extra volatility. When the market is dear, it turns into extra prone to sharp pullbacks.
If there’s a 0.5% – 1% dip, you must in all probability purchase. If there’s a 10% or larger correction, you might wish to again up the truck. This technique should not differ out of your basic objective of investing for so long as attainable available in the market.
2) Tech Giants and Firms with Monopoly Energy Could Profit Extra Beneath Trump
On the margin, President Biden was seen as a harder fighter towards monopolies than Trump. In actual fact, battling monopolies was central to Biden’s financial technique. Consequently, corporations going through antitrust fits like Amazon, Google, Microsoft, and Apple might even see some reduction underneath Trump, although Trump additionally went after these corporations.
As a result of we have now not seen the federal authorities successfully break up tech corporations’ monopoly energy but (simply levy one-off fines), you in all probability wish to simply hold holding these large tech corporations.
We function in a society the place the wealthy and highly effective proceed to get richer and extra highly effective. Therefore, you may as effectively hold proudly owning shares in these dominant corporations.
As quickly as I noticed Google roll out their synthetic intelligence snippets in 2024, which plagiarize content material creators with out giving correct credit score, I purchased extra Google inventory. There’s additionally no means I can overcome OpenAI and Anthropic’s copying of my work, so I grew to become a shareholder in each by way of Fundrise Enterprise, an open-ended enterprise capital product, which anybody can spend money on too. Firm is are staying non-public for longer, which implies extra property must be allotted in direction of non-public investments.
With Trump saying a $500 billion AI infrastructure initiative in partnership with Softbank, Oracle, and OpenAI—dubbed Stargate—it’s clear the federal government sees AI as a transformational know-how. In 20 years, I don’t need my youngsters asking why I didn’t spend money on or work in AI when the chance was so clear!

3) Actual Property Could Strengthen Beneath Trump
Trump has repeatedly admonished the Federal Reserve for its excessive rate of interest coverage. Trump is reportedly planning to override the Federal Reserve’s independence when he returns to the White Home in 2025. The overriding of the Fed’s independence is unlikely to occur, but it surely’s good rhetoric for votes from these hurting from high-interest debt.
On the marketing campaign path, Trump promised to “drive mortgage charges down to three% or decrease.” That’s in all probability not going to occur both, particularly along with his inflationary insurance policies corresponding to mass deportation and tariffs. However at the very least he’ll be cognizant of excessive rates of interest and attempt to push them down. Maybe with sufficient ethical suasion, at the very least the rise in rates of interest might be capped.
Whereas talking on the Financial Membership of New York in early September 2024, Trump stated, “Decreasing mortgage charges is an enormous issue. We’re gonna get them again all the way down to we expect 3%, possibly even decrease than that, saving the common residence purchaser hundreds of {dollars} per 12 months. They will now exit, younger folks will be capable of purchase a house once more and be part of the American Dream.” He talked about suppressing inflation once more in his inauguration speech.
Trump additionally constructed his fortune in residential business actual property. Consequently, maybe he’ll introduce extra actual property pleasant insurance policies that may assist the business actual property market get well. It’s only rational to take care of your personal pursuits.

At Least Maintain On To Your Actual Property
With pent-up demand, a powerful economic system, and probably declining mortgage charges, there must be vital demand driving each residential and business actual property. Consequently, I might not promote your rental properties or main residence. As an alternative, I might maintain on or purchase extra earlier than a possible uptick in demand. The efficiency and analysis differential between shares and actual property is just too massive to maintain in my view.
I clearly bear in mind the anxious occasions of bidding wars between 2000 – 2006, 2012 – 2018, 2020 and 2021, and the spring of 2024. Bidding wars are powerful for patrons as a result of there can solely be one winner. I anticipate bidding wars to return in spring 2025 after a stronger-than-expected spring 2024.
If there may be certainly a melt-up within the inventory market, it would increase shopper wealth and assist deliver up actual property costs with it. The hole between the S&P 500 index and the S&P 500 actual property sector efficiency will probably slim in consequence.

I’I am methodically dollar-cost averaging into non-public actual property by way of Fundrise. Up to now, I’ve invested $954,000 in non-public actual property because the finish of 2016 and over $300,000 in Fundrise. I wish to experience the potential business actual property restoration over the subsequent a number of years.
4) Trump could encourage you to work tougher for longer as a consequence of decrease taxes and return to benefit
When earnings taxes are excessive, the rational financial transfer is to work much less and retire earlier because you get to maintain much less of your cash. Beneath a Trump presidency, the concern of earnings taxes rising ought to diminish. The highest federal earnings tax price will probably stay at 37%, moderately than rising to 39.6% as President Biden has been advocating since 2020.
Listed here are the 2025 federal earnings tax brackets for single, married, and head of family filers.

The best federal marginal earnings tax price to pay is as much as 24%. At this price, you are incomes sufficient to dwell a great life, however you are not paying a lot in taxes that you’re disincentivized to work. Leaping from a 24% to a 32% marginal earnings tax price is critical, whereas providing not far more profit for the extra earnings earned.
Individuals who make six figures or have the potential to make six figures a 12 months or extra, thereby have the inducement to grind it out for 4 years underneath Trump. As well as, Trump can also be centered on a return to benefit, which ought to encourage folks to have hope that their arduous work will repay. Extra staff working tougher for longer equals larger output, which ought to result in larger earnings, larger consumption, and a stronger economic system. Intern, this results in greater actual property and inventory costs.
As soon as once more, those that imagine greater earnings and capital positive aspects taxes are coming might be incorrect for at the very least one other 4 years. Consequently, the sense of urgency to contribute to a Roth IRA by way of regular or backdoor channels fades.
5) Speculative investments like startups and crypto may get a lift underneath Trump
In step with a possible melt-up within the S&P 500, there could also be an excellent larger surge in essentially the most unstable property corresponding to cryptocurrencies, private and non-private synthetic intelligence corporations, and enterprise capital total.
After securing the help of Elon Musk, Donald Trump gained the endorsement of enterprise capitalists Marc Andreessen and Ben Horowitz, earlier than they flip flopped once more. Andreessen and Horowitz believed Trump is healthier for startups and that President Biden has been towards innovation.
Of their publish on “little tech,” aka startups, the agency writes, “The anti-startup bias that’s more and more pervasive throughout the American authorities is a transparent and current risk to the well being and vitality of American know-how success – and due to this fact to the American economic system, the American army, and the American folks.”
Growing asset allocation shift to enterprise capital
Therefore, you may think about allocating between 10% – 20% of your investable property to extra speculative investments like enterprise capital in case they might surge to nosebleed ranges as soon as once more. With as much as a 20% allocation, any outsized positive aspects will considerably impression your total funding returns. On the identical time, if such investments appropriate by 50%, your funds will not be devastated.
I am dollar-cost averaging into an open-ended enterprise capital product that has a majority of its holdings in synthetic intelligence. You may’t spend money on funds like Andreessen Horowitz, except you’re a part of their buddies & household community.
I’ve additionally dedicated $600,000 to a few different closed-end enterprise capital funds that may spend money on AI. The capital will proceed to be known as over the subsequent three years. I haven’t got the entry or means to select AI winners, so I spend money on varied funds to hopefully discover these unicorns. Try Fundrise Enterprise, which has a minimal funding of solely $10.
With Trump‘s launch of $Trump coin days earlier than his inauguration, it looks as if Trump is favorable on the cryptocurrency world as effectively. Consequently, there’ll probably be extra demand and curiosity for cryptocurrencies throughout his time period.
6) Money will probably be an underperformer
If the frenzy in danger property continues underneath Trump and rates of interest come down, then money might be a big underperformer. Consequently, you wish to put your money to work, as holding an excessive amount of money may make you poorer over time.
There’s supposedly a file ~$6 trillion in money sitting on the sidelines. Stronger shopper and company steadiness sheets because the pandemic started is likely one of the foremost explanation why any downturn should not be as devastating because the one we skilled in 2008-2009.
If the amount of cash market fund property reverts to the extent seen earlier than the pandemic, there could possibly be a $2.5 trillion unleashing of money into danger property. Even when the cash market fund property revert to the extent proper earlier than the Fed began elevating charges, we’re speaking $1.5 trillion in money seeking to discover a new residence.

7) Purchase American and defend America turns into common once more
Isolationism, protectionism, and nativism could return underneath Trump.
Throughout his first presidency, Trump was extremely protectionist of U.S. corporations. Trump imposed a number of tariffs to attempt to make U.S. corporations extra aggressive and defend jobs.
After tariffs on Chinese language items jumped from 3 p.c to 12 p.c, China retaliated by elevating tariffs as excessive as 25 p.c on many U.S. items, together with agricultural merchandise and meals.
Typically, commerce wars aren’t good for financial progress as all the pieces simply will get costlier for everybody. It’s like if one particular person stands up within the entrance row, everybody behind should stand as much as see.
Nevertheless, a Trump presidency, together with JD Vance as VP from Ohio, may as soon as once more rejuvenate curiosity in investing within the heartland of America. Extra individuals who imagine in Trump could be keen to maneuver to Republican states to dwell and work. Absolutely, Trump will assist these states that helped him return to energy.
Given this pattern, you might wish to give attention to investing in heartland actual property and corporations. Trump ought to enact insurance policies who helped his constituents win.
8) Inflation could decide up once more underneath Trump towards the top of his time period
Lastly, the mix of rising asset costs, greater company earnings, rising incomes, elevated tariffs, potential tax cuts, decrease rates of interest, elevated authorities spending, rising incomes, and the mass deportation of unlawful immigrants could result in inflationary stress. Consequently, there might be larger stress on the Fed to hike charges once more after a interval of cuts.
In economics, all the pieces is yin and yang. Every financial change displays a brand new change down the street. Given Trump’s tariff insurance policies are inflationary, we noticed the 10-year bond yield spike by 0.15%+ the day of Trump’s victory on November 6, 2024. This spike quickly will increase mortgage charges. That stated, the Fed continues to be on a path to chop charges a number of occasions by way of 2025.
Beneath is the historic Fed Funds price chart, which has been on the decline because the Nineteen Eighties. Because the Fed Funds price rises, it cools the economic system and sometimes results in a recession (grey vertical bar). Because the Fed Funds price declines, it boosts the economic system, creating inflationary stress.
The hot button is to personal property that experience the inflation wave, and the prime asset for that is actual property. Personal your main residence. Purchase rental properties. Spend money on non-public actual property funds long run. And think about proudly owning some gold. In case you do, you will cut back complaining about inflation in 10 years as a result of you’ll probably have benefited from inflation.

All the pieces May Be Worse Than Anticipated Too
The fact is that whether or not a Democrat or a Republican is within the White Home issues much less in your investments than you may assume. Traditionally, the S&P 500 has carried out effectively underneath each events. Many variables affect the S&P 500’s efficiency, particularly earnings progress.

The CEO of 1, a solopreneur, makes an enormous distinction to their firm’s efficiency. However, if Tim Cook dinner retired from Apple tomorrow, does it actually matter? Loads of lieutenants can fill his departure. Apple’s share value may truly go up, fueled by hopes of a extra visionary and modern CEO taking his place.
Strategically, to make a prime 0.1% earnings, your objective must be to change into a CEO of a giant firm! You do not have to take any dangers like entrepreneurs, but you receives a commission obscene quantities of cash for a job that loads of folks can do.
The President Solely Performs A Small Half In Your Funds
The most important think about your means to develop your wealth is YOU, not the president. You management your saving price, work ethic, funding choices, and profession selections, not the president. Do not depend on having the “proper” president that will help you obtain monetary freedom.
Finally, each U.S. President is a power-hungry patriot who’s attempting to do what’s greatest for essentially the most variety of Individuals. If the President does a poor job, due to our democracy, they are going to be voted out.
Life is valuable, but fleeting. Attempt to perceive different folks’s factors of view earlier than attacking. Join by way of non-violence. We’ve got extra in frequent than we expect.
My plan is to place my head down and do no matter it takes to care for my household over the subsequent 4 years. I am grinding my means again to monetary independence, witg a larger perception that I am going to get there by December 31, 2027. Alongside the way in which, I’ll attempt to assist readers obtain monetary freedom sooner, regardless of their political affiliation.
Since 2009, I’ve discovered that people who find themselves extra financially safe are nicer and happier. Consequently, extra good comes into the world.
Diversify Into Actual Property In The Heartland
In case you’re excited by diversifying into heartland actual property, take a look at Fundrise. Fundrise manages about $3 billion for over 350,000 traders. Nearly all of its investments are within the Sunbelt and Heartland, the place valuations are usually decrease and yields are usually greater. A Trump presidency must be a web optimistic for heartland/Sunbelt states that supported him.

I’ve invested six figures into Fundrise and Fundrise is a long-time sponsor of Monetary Samurai.
You may be part of 60,000 +different folks by signing up for my free weekly e-newsletter right here. Monetary Samurai started in 2009 and is likely one of the largest independently-owned private finance websites at this time with about 1 million web page views a month. All the pieces is written based mostly off firsthand expertise as a result of cash is just too necessary to be left as much as pontification.