A New Administration, New Policies, & Fresh Opportunities

The new administration wasted no time making moves during its first week, with a whirlwind of executive orders and policy discussions—including tariffs, deregulation, and inflation measures. With so much in flux, let's break down what this could mean for the markets and your investments.

Tariffs: A New Round of Trade Tensions?

Tariffs are back in the spotlight, with new levies on China (10%) and Mexico/Canada (25%) potentially taking effect as soon as February 1st. While domestic manufacturers—including some in big tech—could benefit, consumers may feel the pinch through higher prices on goods like cars, and even everyday imports like beer and French fries. Tariffs could also contribute to rising interest rates, a stronger dollar, and inflation pressures.

Deregulation & Energy: What to Watch

The administration is signaling a push toward deregulation, with banks already seeing positive impacts in earnings. Could this be a sign of things to come across other industries? On the energy front, an executive order aims to lower U.S. energy costs, boost domestic reserves, and expand exports—though it's still too early to gauge its full impact.

Inflation & Cost of Living: Relief in Sight?

One of the most talked-about executive orders focuses on tackling inflation and the cost-of-living crisis. Proposed measures include lowering housing costs and eliminating unnecessary fees, though specifics remain vague. Agencies have been tasked with reporting on progress monthly, so we’ll see how this unfolds.

Trump vs. Powell: A Rate Showdown?

The relationship between President Trump and Fed Chair Powell has been tense before, and with inflation still high, interest rates could become a major battleground in 2025. While the Fed aims to bring inflation down to 2%, some experts suggest 2.5–3% could become the new normal.

What This Means for Your Investments

Markets are adjusting to the changing landscape, and staying diversified remains key. Sectors benefiting from deregulation and domestic production could see an upside, while inflation-sensitive assets may need close monitoring. We’re still in the early days, but we’ll continue to keep you informed as policies take shape.

As always, if you have any questions or want to discuss your investment strategy, feel free to reach out. We're here to help!