#163 Will The Trump Bump Continue?

Mar 29, 2017

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The election of President Trump was unexpected, and there is no denying that it has affected the markets. But instead of a crash, we are seeing all time highs. Since the election, the market has been accelerating like never before until last week when we saw it slow down. This begs the question, Will the Trump bump Become the Trump Dump? In this episode, I seek the opinions of two of my favorite people, Joe Saul-Sehy of Stacking Benjamins and Burt White of LPL Financial. They will tell us what they expect to see in the markets and how we should plan our investment and retirement, and if this Trump Bump will continue. This episode is fun, fast-paced, and full of great advice, make sure you join us. President Trump’s election has led to an all-time high in the markets.

Since the election, we are seeing all-time highs in the market. US Equity Indexes have been on a tear. The S&P 500 has set multiple all-time highs and the Dow Jones has hit 20000 which it has never hit before. This growth is exciting and is giving many people hope for the next 4 years. People are taking action based on what we are seeing in the markets, but is this the right move? Stay tuned to hear my tips on how to react to these market changes. Should we take action on current market changes?

Markets surged after the election of President Trump, until last week where we had the worst week since the election. Does this bode ill for the Trump administration? Should we take steps to mitigate this risk now before something terrible happens? On today’s show, we have my good buddy Joe Saul-Sehy of Stacking Benjamins. He has great tips for us about how we should think regarding the changes we are seeing. Is it prudent to sell as soon as the markets begin to drop significantly? Based on personal experience, Joe says “No.” It’s best to keep a level head and be smart with your investments. The markets will rise again, we don’t know when but we don’t want to sell if it will jump back up tomorrow. Will President Trump’s agenda of growth make us stronger?

President Trump has an agenda of growth and many of us were not aware just how much growth might be possible. In the past growth has been driven by the consumer but with our president focused on nationwide growth, businesses may be gaining confidence that they previously have not had. It’s easy to invest in new employees if things go bad you can let them go. But it's another thing entirely to invest in a new factory or distribution system. If you do that, you are committed on a far deeper level. Burt White from LPL Financials believes that President Trump’s agenda of growth might give businesses the confidence to invest in themselves. He predicts that this may drastically increase not only the taxable income of the government but also the number of jobs. The Seas are calm, it’s time to swab the deck.

During a storm is not the best time to make repairs and adjustments to your ship, calm seas are much better suited for that. The same is true for our economic ship. Market downturns are not the time to rethink your investment strategy or reallocate funds to fit your changing risk tolerance. It is a much better idea to make those changes when the markets are good like they are now. On this week’s show, I encourage you to have those little conversations with yourself and make those changes to repair and maintain your ship while the seas are calm. Make sure you listen to this week’s Retirement Answer man Show to find out how. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

[0:28] Market bump since election day
[1:20] Will this bump last?

HOT TOPIC SEGMENT

[3:15] Joe Saul-Sehy and his thoughts on the market jumps we are experiencing.
[6:15] Are the changes that are happening actionable?
[8:33] Indexes are created to be positive machines.
[10:06] The best time to rethink your investment strategy is when times are good.
[12:23] Should I sell when the market begins to fall?

PRACTICAL PLANNING SEGMENT

[14:19] Burt White thinks market drops are inevitable.
[15:56] President Trump’s plan is growth based and the market is beginning to focus on that.
[18:05] Businesses may gain confidence to invest in their own growth.
[20:35] How does someone working toward retirement structure their investment?
[24:20] How do bonds fit into my investment plan?

TODAY’S SMART SPRINT SEGMENT

[29:26] Times are good, it’s time to check your investment strategy and make sure everything is Ship Shape.

THE HAPPY LAB SEGMENT

[30:47] Little conversations and the value of having them.
[32:05] I found my dream mountain bike!

RESOURCES MENTIONED IN THIS EPISODE
Contact Roger: http://www.rogerwhitney.com/retirementanswers/
Roger’s retirement learning center: www.RogerWhitney.com/learn
The Retirement Answer Man Facebook page: www.Facebook.com/RetirementAnswerMan
Stacking Benjamins Facebook Page: https://www.facebook.com/IStackBenjamins/?ref=br_rs