Understanding Policy Shifts and How to Prepare Financially
Every four years, the United States votes for a new leader, but markets react to much more than campaign slogans and political personalities.
As we prepare to welcome the 47th U.S. President, many investors are asking: What does this mean for my portfolio?
Whether you’re a seasoned investor or just beginning your journey, it’s natural to feel a little uncertain during political transitions. But here’s the truth: markets are not ruled by politics alone—they’re driven by patterns, policies, and human behavior.
Let’s break down what a change in leadership might mean for investors and how to stay grounded through it all.
MARKETS REACT TO UNCERTAINTY: NOT JUST POLITICS
📈 Since the U.S. election two-and-a-half months ago, the SPDR S&P 500 ETF (SPY) and Invesco QQQ Trust (QQQ) have gained 4.3% and 6.3%, respectively.
Looking at history, during Trump’s first term, SPY rose 83%, and QQQ soared 171%, compared to 65% for both ETFs during Biden’s presidency.
While policy changes—such as potential tax cuts, deregulation, and trade tariffs—may influence SPECIFIC SECTORS, long-term market trends like artificial intelligence (AI), technological innovation, and the global business cycle will play a BIGGER role in shaping the economy.
💫 For those not familiar with SPY & QQQ: SPY is an ETF that tracks the S&P 500 (representing the largest 500 U.S. companies). It is often seen as a barometer of the overall stock market.QQQ is an ETF that tracks the Nasdaq-100, a tech-heavy index, making it a key indicator for the technology sector’s performance. *This stuff is my jam, so book a discovery call below if you want to learn about this & much more.
POLICIES MATTER: SO DOES YOUR TIME HORIZON
Just yesterday, President Trump signed several executive orders, including:
✔ Placing a Federal hiring freeze
✔ Ordering government workers back to the office five days a week
✔ Moving to end birthright citizenship
✔ Withdrawing from a major international climate accord
❌ Ending government-backed DEI (Diversity, Equity, and Inclusion) initiatives
As a Latina and someone deeply invested in financial wellness and economic equity, I won’t pretend that some of these policies haven’t been difficult to process (I’m bracing myself for more to come).
However, my goal is to remain focused on what these changes mean from a financial perspective...helping you navigate shifts in the market and plan strategically.
The key questions for global investors (Yes, no matter where YOU are!) includes:
👉🏽 How many more executive orders will come and how quickly will they be implemented?
👉🏽 Will we see retaliatory tariffs and how might they impact global stock markets?
👉🏽 How inflationary will these policies be for the U.S. and the global economy?
I’ll also be keeping a close eye on ESG & Clean Energy Investing, as the incoming administration’s stance on environmental, social, and governance-focused investing (ESG) will likely reduce available options in this space & potentially performance.
WHAT THIS MEANS FOR YOU
🌍 For all investors: Potential tariff increases on China and other trade restrictions could affect global supply chains and emerging markets. Some of Trump’s policies may be inflationary in nature, which could impact global markets.
🇺🇸 US Investors: Aside from all the above, keep an eye on chatter about “Rothification”! This refers to a policy shift that could require more after-tax (ROTH) contributions to retirement plans. This change would generate HIGHER short-term tax revenue for the government, but could ALSO alter how investors plan for retirement.
💡 For ALL: Sector-based opportunities may emerge in:
✔ Technology (AI & semiconductors)
✔ Energy & infrastructure (depending on deregulation)
✔ Financial services (tax policy impacts)
✔ Cryptocurrency (potential lighter regulations)
YOUR FINANCIAL FUTURE
The 47th U.S. president will shape future policies—but you shape your financial future.
Instead of focusing on short-term noise, use this moment to recenter your strategy, clarify your goals, and recommit to your long-term vision.
You’ve built this far with purpose.
XOXO,
Anna
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Anna Orenstein-Cardona is a Financial Coach and NFEC-Certified Financial Educator (CFEI) who empowers organizations, small-business owners, and individuals to grow their money knowledge in fun and creative ways. She worked on Wall Street and in the City of London for over two-decades, before launching her financial education and coaching business, Wear Your Money Crown®.
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