B&D Special Update: Election 2024

American voters re-elected Donald Trump as the 47th President of the United States. The divisions in our country are strong, but we believe our people and our institutions have the resiliency to continue to move our country forward. In the end, it appears the vote was a rebuke of the Biden-Harris progressive agenda and their inability to stanch the rise of inflation quickly enough over the past few years. Those who voted for Trump because of higher prices could find themselves with buyer’s remorse if he follows through with his threat to significantly increase tariffs as this will cause the price for goods to certainly increase.

Technology stocks should get a boost from Trump’s re-election as the Justice Department will most likely not pursue any of the monopoly issues with any vigor. Small company stocks may also perform well should the cost of imported goods increase significantly (again, this depends on the size and comprehensiveness of the tariffs put in place). A strong dollar would be a headwind for international stocks however they continue to look attractive due to much lower valuations.

Based on the proposed policies from the Trump-Vance campaign, many economists believe inflation and the deficit could move higher, interest rates should follow, creating a difficult environment for bonds. We will be reviewing portfolios to adjust to this new environment.

The next four years will certainly be volatile, but in the end, as we have said before, we remain focused on our clients’ long-term goals, and we believe balanced, diversified portfolios give investors the best opportunity to achieve those goals regardless of the political situation.

We appreciate the trust and confidence you have placed in our firm. Now that the election is over, we hope our clients can focus on the holidays and spending time with loved ones.

The Bond&Devick Team