KNOXVILLE, Tenn. (WATE) — In the aftermath of President-elect Donald Trump‘s election win, economists and policy experts are figuring out how this is going to impact the public’s wallets. Financial advisor Mark Pancratz with Axiom Wealth Management shared with 6 News what people can expect.
“The stock market does not like uncertainty. And when you’re going through an election, there’s a lot of uncertainty. Who’s going to win, especially in this election, and so once Trump was announced and the addition to what happened in the house and the Senate with some of that being flipped, you saw the market respond very favorably. I think Trump’s conversations around wanting to be pro-America, pro-business, pro-energy, you see a real uptick in the market, and the S&P 500 will probably continue to do well,” said Pancratz.
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Several people have been wondering if they’re 401K will be impacted and if they need to do anything.
“What we oftentimes see is that people operate financially off of emotion. And so one, it’s taking a step back and not letting emotion dictate what you’re going to do, whether it’s drastic changes and how your money is managed or where you’re investing it right,” he explained. “One thing for those that may be a little bit younger with time to invest, really evaluate the Roth aspect of your 401K if you have that Roth option because that money grows tax-free. That’s a great thing that you can do to help your retirement.”
He also explained how Trump’s proposed tariffs will impact Americans, especially as several economists say it will lead to inflation.
“If you add a tariff to a company, they’re just going to pass that expense down to the consumer. Whether the consumer buys the thing from China and pays more or they go to a more expensive American made product, inflation is going to be there. But with this administration, they’ve talked about cutting back on government spending,” said Pancratz. “So there may be aspects where inflation is up, but if you look at the macro perspective, we don’t think inflation will continue to be as high.”
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He added a reminder, saying, “Inflation is good to a level, right 3% inflation has been about where we’re at. So some level of inflation is good for the economy.”
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