Navigating the Economic Impact of Trump's Return to the White House | Weekly Business Briefs w/ Martin Perdomo

What if seismic political shifts could directly impact your financial future? Join us as we uncover the ripple effects of Donald Trump's unprecedented return to the White House and what it means for you. After defying the odds to become the 47th President, Trump is back at the helm, steering America through rampant inflation and immigration challenges. His victory, marked by a Republican Senate sweep and a contentious battle for the House, sets the stage for economic maneuvers that could redefine wealth-building in an era of uncertainty. We promise you'll walk away with a deeper understanding of how leadership, risk, and resilience are your best allies in these turbulent times.

We'll break down the economic implications of Trump's policies, focusing on the potential impacts of a 15% corporate tax rate and sweeping tariff changes. Imagine Wall Street's excitement over a projected 4% boost to S&P 500 earnings, contrasted with the looming shadow of a $7.75 trillion debt increase. With GDP growth figures and market volatility in the spotlight, this episode will equip you with insights to navigate the challenges ahead strategically. Whether you're a seasoned investor or a curious listener, this discussion will arm you with the knowledge to turn political tides into opportunities for wealth creation.

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Transcript

Speaker 1: 0:28

Breaking news, trump's historic comeback, what it means for America that and more in this week's Weekly Business Brief. It's Wednesday, november 6, 2024, and it's time to get down to business and dive into the top news in this week's Weekly Business Brief. Love him or hate him, donald J Trump has done it again. In a stunning reversal of history, trump has been re-elected as the 47th president of the United States. This marks the first time in over 120 years that a former president, once defeated, has clawed his way back into the White House. The tipping point securing Wisconsin at 5.30 am this morning, which pushed him past the critical 270 electoral votes. But there's more. Trump's victory also positions him as the first Republican since 2004 to win the popular vote, which is a shift in a modern American politics. Here's what you need to know about this unprecedented victory Senate sweep Republicans reclaimed control of the Senate with pivotal wins in Ohio, west Virginia and Nebraska. Bernie Moreno, jim Justice and Deb Fischer will now bolster Trump's political agenda. House battle the fight for the House of Representatives rages on, and whether Republicans hold both chambers will define the next phase of Trump's presidency. But Trump's message is clear he's ready to push his agenda, with or without Congress.

Speaker 1: 2:12

Why did voters choose Trump? Trump's campaign capitalized on the key voter anxieties rampant inflation, immigration concerns, post-pandemic economic uncertainty. Many Americans saw Trump not only as a stronger leader, but also as the economic champion they need to stabilize their finances and the future. Despite legal battles, scandals and even failed assassination attempts, Trump's appeal remained unstoppable. For Kamala Harris, the headquarters were just too strong Running in place for President Biden, who bowed out of the race. She faced an uphill battle against inflation, housing crisis issues. Trump's definitely pinned on her as part of the Biden administration.

Speaker 1: 3:05

What comes next? Trump's second term promises to be one of a dramatic action, from disproportions to imposing sweeping tariffs. His administration will be about delivering on promises of border control and economic revitalization. With a divided or united Congress, trump vows to push forward For listeners of Wealthy AF. A big takeaway here Leadership, risk-taking, resilience, whether in politics or business, are the key to navigating uncertain times. Trump's ability to seize opportunities, guys, amid chaos mirrors entrepreneurial success strategies, no matter where you stand politically. The question remains, though how will you capitalize on the challenges and turn them into your next big win? This election is much more than just politics, guys. It's about the future of wealth building, entrepreneurship and personal wealth. Trump's victory is going to spark shifts that every listener here at Wealthy AF needs to be prepared for. So what's your next move, guys? Make sure you're staying ahead of the game by tuning in to our weekly business brief, where we dive into trending issues like these in real time. Don't forget to subscribe and check out our latest episode and, if you're not already a subscriber to our newsletter, head over to WealthyAFai to get the latest insights straight to you, to your inbox. Let's continue building wealth, scaling our businesses and navigating these uncertain times with confidence.

Speaker 1: 4:55

What could another Trump presidency mean for your portfolio? Let's dive in. With Donald Trump eyeing the White House again, wall Street is bracing for a mix of lower taxes, deregulation and potential tariff increases. His policies on tariffs and tax reform, especially reducing the corporate tax rate to 15%, could have a massive, massive, massive impact on markets. In fact, experts estimate this tax cut could boast S&P 500 earnings by 4%, while tariffs could either lift or drag the US GDP, depending on implementation. Investors are anticipating pro-growth policies, but with rising inflation concerns and volatile interest rates, how will the market truly respond this time? During Trump's first term, the S&P 500 soared nearly 70% guys, fueled by tech stocks, even as tariffs caused bouts of market volatility.

Speaker 1: 6:05

There are key data for you. These are key datas. These are key datas for you to remember US GDP grew by 2.8% in Q3 in 2024, but new tariffs could subtract a quarter point from that growth. Trump's tax and spending plans may add $7.75 trillion to the US debt over the next decade. I talked about this here actually a few weeks ago. Trump's tax plan, his plan, his spending plan, actually increases the deficit by significantly more than Harris' proposal. The 10-year treasury yield recently hit a 4.47%, the highest since July, reflecting growing deficit concern. Now, guys, keep in mind that the 10-year treasury is what dictates what happens with mortgages, that the 10-year treasury is what dictates what happens with mortgages. So those of you that are entrepreneurs that are borrowing money, real estate entrepreneurs that are borrowing money to do deals this is an important metric. For Americans buying houses. This is an important metric to look at.

Speaker 1: 7:17

The question on everyone's mind is can Trump's policies boost economic growth without stoking inflation and increasing federal deficit? Investors need to prepare for potential volatility, especially if Trump ramps up tariffs. Keep a close eye on sectors like construction, energy, which may benefit from deregulation, but be mindful of industries hit by tariffs, like tech and manufacturing. So, guys, extremely, extremely important. My thought process on this is I think that Trump is better for the economy.

Speaker 1: 7:51

As an investor, I think, when you look back at policies, this is just policy driven based on the policies that were created, and that Trump is proposing is good for economic growth in my opinion, and that Trump is proposing is good for economic growth in my opinion, versus the ones that were being presented. Either way, it doesn't matter wealthy AF listeners and followers. What really matters, guys, is how are you positioning yourself based on the policies that are presented by whatever, whoever is governing and whoever is running the White House? How are you positioning yourself to succeed, to create wealth for you and your family? That's the question that you need to be asking yourself. Stay tuned, because I'll be sharing some of the strategies that I will be doing in the future as these new policies get rolled out.

Speaker 1: 8:39

I believe one of the great policies I can tell you one of the things that I'm looking out for is the 100% bonus depreciation, which was a five-year phase and is fading out, I believe, next year for real estate investors. I will be talking about that a little more in future episodes. Trump's economic plan was to extend that and that's what he proposed and, by the way, if some of it, what was being proposed in his campaign is that he was going to go retroactive with some of those plans if he won. So that's exciting for real estate investors. I believe that real estate, the real estate market, is going to come back. I also believe that we're going to see interest rates coming down, although it's been very volatile right now, as this newsletter states here that um, as economists are projecting that the, the, the 10-year treasury, hit 4.47 because they are afraid of what tariff and how tariffs might impact inflation. That is something that I'm um, I would expect trump and his team to consider. Right. Make sure they do it strategically. But I'm excited.

Speaker 1: 9:53

The future is bright for businesses, I believe, for America and for those of you that didn't vote for Trump. He is still your president, he is everyone's president. He still will be looking out for your best interest. My opinion and that's his job. Right Like that's that's his job and it's our job as American citizens to hold him accountable, to look out for everyone's best interest, not just a small minority or small group. It's everyone's best interest. So thank you for listening, really appreciate. This has been your weekly business brief. Stay safe, peace out. Future looks bright. I'm excited.