{"id":13368,"date":"2024-09-04T20:22:11","date_gmt":"2024-09-04T20:22:11","guid":{"rendered":"https:\/\/zacksim.com\/blog\/?p=13368"},"modified":"2024-09-17T15:15:06","modified_gmt":"2024-09-17T15:15:06","slug":"how-will-harris-or-trump-economic-policies-affect-investors","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/how-will-harris-or-trump-economic-policies-affect-investors\/","title":{"rendered":"How Will Harris Or Trump Economic Policies Affect Investors?"},"content":{"rendered":"\n<p><em>Elliot S. from North Caldwell, NJ asks: <\/em>Hi Mitch, In the financial media there are warnings that economic policies under a Harris or Trump administration would have inflationary effects. It appears that inflation is therefore inevitable, reducing the buying power of our U.S. Dollars. As a retiree, concerned more with spendable income than capital preservation, should I be more heavily invested in fixed income securities such as Preferred Stocks?<\/p>\n\n\n\n<p><strong>Mitch\u2019s Response:<\/strong><\/p>\n\n\n\n<p>Thank you for emailing your question. Whether it\u2019s tax and spend policy proposals for a Harris administration or across-the-board tariffs under a Trump administration, there\u2019s been talk in the financial media of inflationary impacts under either scenario. There are some valid arguments for how these various policies could apply inflationary pressure, but here\u2019s the kicker: campaign ideas, proposals, and talking points often do not become actual policy.<\/p>\n\n\n\n<p>We\u2019ve seen this time and again throughout history. In many cases, policy proposals require Congressional approval, and it appears for now that a majority in either the House or the Senate would be very slim, making the 60-vote threshold in the Senate a steep hurdle to overcome. We also often see a new president drop some proposals in an effort to negotiate on others, or water down policies such that they\u2019re far less sweeping than what was said on the campaign trail.<\/p>\n\n\n\n<p><strong><u><a href=\"https:\/\/go.steadyinvestor.com\/stock-market-returns-election-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_2024_09_05&amp;content=election_year_returns\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/stock-market-returns-election-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_2024_09_05&amp;content=election_year_returns\">How Could the 2024 Presidential Election Impact Your Investments?<\/a><\/u><\/strong><\/p>\n\n\n\n<p>Given the uncertainties that accompany the upcoming election, making sound, objective investment decisions are more critical than ever.<\/p>\n\n\n\n<p>By understanding historical market trends during election years, you can better navigate these uncertain times. To gain these valuable insights, we recommend downloading our free guide, &#8220;<strong><u><a href=\"https:\/\/go.steadyinvestor.com\/stock-market-returns-election-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_2024_09_05&amp;content=election_year_returns\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/stock-market-returns-election-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_2024_09_05&amp;content=election_year_returns\">Stock Market Returns in an Election Year<sup>1<\/sup><\/a><\/u><\/strong>,&#8221; which covers key trends and strategies to help inform your decisions, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How stocks have performed in every election year since 1928<\/li>\n\n\n\n<li>The effect on performance when an incumbent runs for re-election<\/li>\n\n\n\n<li>How 2024 has compared to election year averages so far<\/li>\n\n\n\n<li>And more\u2026<\/li>\n<\/ul>\n\n\n\n<p>If you have $500,000 or more, click on the link below to get your free copy of this special report today\u2014and invest smarter during this election year!<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/go.steadyinvestor.com\/stock-market-returns-election-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_2024_09_05&amp;content=election_year_returns\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/stock-market-returns-election-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_2024_09_05&amp;content=election_year_returns\"><u>Get Our FREE Guide: <em>Stock Market Returns in an Election Year<\/em> <\/u><\/a><\/strong><sup><a href=\"https:\/\/go.steadyinvestor.com\/stock-market-returns-election-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_2024_09_05&amp;content=election_year_returns\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/stock-market-returns-election-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_2024_09_05&amp;content=election_year_returns\">1<\/a><\/sup><\/p>\n\n\n\n<p>In short, I think now is a time for investors to observe and take note, but not to necessarily react to what is being proposed. In the parlance of investing and politics, it\u2019s important to focus on what parties and politicians do, not what they say.<\/p>\n\n\n\n<p>On the issue of tariffs \u2013 just to offer an example \u2013 a president has quite a bit of executive authority to levy tariffs on imports, but much of the latitude must be applied to national security or dumping grounds. Many such tariffs could be applied on Day 1, but it is also easy to imagine legal challenges in hundreds or perhaps thousands of cases where industries put forward objections. In other words, the potential for inflationary impact is not necessarily automatic.<\/p>\n\n\n\n<p>Presidential administrations also have a greater ability to pass tax and spend policies based on budget reconciliation, which can pass both chambers with a simple majority. But much like I mentioned above, I think it makes sense to wait and see what the actual plans are and what ultimately works its way through Congress, which I doubt will look exactly like the \u2018wish lists\u2019 we hear about on the campaign trail. Higher top tax rates coupled with increased spending plans are not automatically inflationary and could have the opposite effect if taxes choke off growth.<\/p>\n\n\n\n<p>As for the second part of your question, I cannot offer asset allocation advice without knowing more about your financial situation, income needs, risk tolerance, investment horizon, and long-term goals. But I can say that investors interested in generating income in their investment portfolios often benefit from a diversified approach of fixed income, preferred securities, and dividend-paying stocks\u2014all of which we manage here at Zacks Investment Management. Income generation and cash flow management are key for many retirees, but I often remind retiree clients that growth is almost always a key objective as well\u2014so that income can be provided through someone\u2019s entire retirement life. That generally means owning a diversified portfolio of equities as well, in such a way that aligns with each individual or family\u2019s objectives. &nbsp;<\/p>\n\n\n\n<p>Investing during an election year demands putting political opinions aside and focusing on objective, data-driven decisions.<\/p>\n\n\n\n<p>To keep your portfolio on track during uncertain times, we recommend reviewing market performance from previous election years to guide your decision-making.<\/p>\n\n\n\n<p>Our free guide,\u00a0<strong><em><u><a href=\"https:\/\/go.steadyinvestor.com\/stock-market-returns-election-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_2024_09_05&amp;content=election_year_returns\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/stock-market-returns-election-zim?source=zim&amp;medium=blog&amp;term=mitchsmailbox_2024_09_05&amp;content=election_year_returns\">Stock Market Returns in an Election Year<sup>2<\/sup><\/a><\/u><\/em><\/strong><em>, <\/em>shares insights into historical market performance during election years, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How stocks have performed in every election year since 1928<\/li>\n\n\n\n<li>The effect on performance when an incumbent runs for re-election<\/li>\n\n\n\n<li>How 2024 has compared to election year averages so far<\/li>\n\n\n\n<li>And more\u2026<\/li>\n<\/ul>\n\n\n\n<p>If you have $500,000 or more, click on the link below to get your free copy of this special report today\u2014and invest smarter during this election year!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the election nears, Mitch looks at the possible effects of each candidate\u2019s economic policy proposals, with a reminder that, so far, it&#8217;s all just campaign talking points. <\/p>\n","protected":false},"author":3,"featured_media":13391,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[66,71],"tags":[],"class_list":["post-13368","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mitchs-mailbox","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=13368"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13368\/revisions"}],"predecessor-version":[{"id":13369,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13368\/revisions\/13369"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media\/13391"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=13368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=13368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=13368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}