IDAHO, USA — Stock markets surged after Trump’s election win, but financial experts said that doesn’t necessarily foreshadow what the next four years could look like.
Craig Spanton, who is a financial adviser in Boise, said it’s hard to predict exactly what markets will do when someone takes office – but it is normal for them to fluctuate with a new administration.
“Everybody always wants an easy answer,” Spanton said. “If this team wins, what happens, versus if the other team wins, what happens? It's never that easy.”
However, because Trump has already been in office once, Spanton said there is a little predictability on what could happen – which could give investors a few hints on what to start investing in.
“Take a look at what we think is probably going to happen and rather than just invest in all stocks, start to pick things that you will you think will do better and avoid some things that you think will do worse,” Spanton said.
When it comes to price increases for things like groceries or gas, Steven Peterson, a professor and financial expert at University of Idaho, said it will be hard to know until Trump takes office and starts implementing policies.
“We've gotta wait and see what those actual policies are before we make any decisions,” Peterson said.
Peterson said some of the policies that Trump wants to implement could lead to higher interest rates which would lead to another increase in inflation – but that is only if Trump implements the policies he said he wants to, so it’s a waiting game until then.
“We'll begin to see how things shake out in about six months, and we'll get a good sense of where the economy is going to go from there,” Peterson said.
For now, Peterson said to hold off on making any big financial decisions until it’s clearer how exactly the markets will shape up after Trump takes office.
“Be very cautious, and before making any dramatic moves, be sure to talk to your investment advisor. The stock market is incredibly volatile,” Peterson said.