Building wealth during President Trump's second term.
Summary
In the next four years, ride on the coattails of the rich people who will profit from deregulation. Buy stock. Buy or hold real estate. BUT, make sure you execute your exit strategy before a deregulation fueled market crash happens.
Why take my investing advice?
You shouldn’t take my advice nor that of anyone else! I will be the first to point out that I do not have a business degree nor am I financial planner. I'm an engineer who never made a six figure salary but yet thru scrimping, saving, and investing was able to retire at age 40. Since retirement 23 years ago, my net worth has continued to increase at 6% a year even with my lifestyle.
Just listen to the trends I am pointing out, and think about what it means for YOUR investing strategy. I don’t care what you do, as long as you THINK about it and decide for yourself. Gather all the information you can and then decide for yourself what you think the future holds. The following is just my take on things and I would be very interested in hearing yours.
Why stocks are king the next four years
President elect Trump has made it very clear that DEREGULATION is going to be the theme of his next term which is why the stock market was exuberant when he got elected. Large corporations are hindered at every turn by federal regulation. The EPA makes them spend billions to keep them from polluting our air and water. The SEC prevents large corporations from merging and forming ultra-profitable monopolies. Banking regulations prevent risky high yield investments that endanger their financial stability. Many of these restrictive regulations are going to be eliminated which means that I see corporate profits soaring during President Trumps term and an extended bull market. This is precisely why I am going to be aggressively investing in the stock market. Since I already have a huge portion of my assets in the stock market, I am in no hurry to get into the bull market and will be doing dollar cost averaging over the next year after the current exuberance dies down a bit.
STOCK STOCK STOCKS! Ride on the coattails of the 1%.
The second part of my stock market strategy is an exit strategy. Deregulation has huge risks. In fact, the near collapse of the US economy triggered by Silicon Valley Bank failing was directly attributed to the 2018 EGRRCPA banking deregulation. Aggressive deregulation will probably cause a financial meltdown, the only question is when. My bet is that it will take at least 5 years so my plan is to sell off all my stock by Jan 1, 2029. I don’t care if I miss a few years of bull market, I want to leave the party before things get messy.
Also, make sure to put your assets into BANKS that are too large to fail and keep the balance under the FDIC insured amounts. Do NOT keep your money in internet banks like WISE because when these companies fail, your money is GONE.
Why Real Estate is a great investment during Trump’s second term
Let me explain why I am as bullish on real estate as I am with the stock market and also give some advice to people who are angry about their inability to buy their first home.
Things I believe will make real estate continue to be an amazing investment:
Federal reserve trend of lowering interest rates
A housing shortage that will take at least a decade to correct
Inflation caused by large federal deficits
Possible tax breaks to investors in real estate
Possible deregulation allowing corporations to snap up single family homes
A quick note for people who are angry about their inability to buy a house. It IS possible for young people to buy a home and the method I outline for buying your first home in "Poor to rich for disadvantaged teens" still works today. In fact, my nephew Michael did this exact thing this year and bought his first house at age 22 with no money down.
The other thing to note is that the secret to making house purchases affordable is to reverse the trend of monster houses. To make affordable housing we need to make SMALLER units in multi-story buildings but restrictive NIMBY zoning laws prevent this. Until we find a way of changing zoning laws, housing will never be affordable.
Although I am bullish on the housing market, I have no plans to buy any more real estate because I am retired and being a landlord is really a full time job if you do it well. I currently have three rental properties and will not be buying any more.
Lets again talk about the real estate exit strategy. As mentioned with the stock market, deregulation is a huge risk to our economy. A deregulation caused stock market crash would also cause a crash of real estate prices because of the massive number of foreclosures it would cause. My plan for real estate is also to sell all of my rental properties by Jan 1, 2029.
OK: So summary so far. STOCK MARKET - buy buy buy. REAL ESTATE - buy buy buy.
Get rich quick with Crypto!
Bitcoin is going to break 100k this week!
Bitcoin is skyrocketing!
Bitcoin hit a record high today!!!!
All my friends are getting rich by day trading crytpo!
I say this in every crypto video I have ever made. Putting money in crypto is gambling, not investing, so only put in money that you can afford to lose. The reason I bought crypto at the bottom on 12/12/22 was on the outside chance it actually becomes a currency. Just like last time, the masses are going to get FOMO with BTC hitting 100k and jump into the market then lose their shirts. Please don’t listen to people who claim to have a system for beating the market and getting rich. Their "system" to get rich is to make money from suckers who buy their newsletters, seminars, and programs.
Summary
In the next four years, ride on the coattails of the rich people who will profit from deregulation. Buy stock. Buy or hold real estate. BUT, make sure you execute your exit strategy before a deregulation fueled market crash happens.
The funny thing is how a boomer like me quantifies "skyrocket". For me, the 15% return I expect over the next four years IS an incredible rate of return because for most of my life, I have only gotten single digit returns. 15% return IS big. It will double my net worth in just four years. Its when people get greedy that they lose it all.
Apology
First, sorry for the complete absence of posts in the last year. 2024 has been a rough one but things have turned around and I plan on posting regularly. Most of my posts will be about fitness but some, like this one, are about personal finance.
first
Thank you Scooby i have been a fan of yours for years. This is what i am looking at:
The same investment banks that were scaring everybody in 2022 telling people to go into bonds (look at what all markets have done since) now they say that they are bullish, encouraing people to buy.
There is probably a distribution phase going on where all the whales are starting to unload their stuff to retail. The liquidity cycle ends in mid-late 2025 (listen to Michael Howell from Crossborder Capital), and considering how many elections have been anticipated to 2024 or early 2025 i am very worried that some event is planned to crash down the market hard within a year.
As for bitcoin the usdt dominance support (what has indicated bitcoin tops for the las 5 years) seems to have been broken this morning. We are in new territory. There is no telling how high the wave of insanity will take it this time, only the old saying applies 'when your barber starts telling you about bitcoin you better run'