During his campaign, President-elect Donald Trump said the stock market was in a bubble. The day after he was elected, the stock market tanked, and then suddenly reversed once investors realized this upset could mean lower taxes, less regulation and increased stimulus.
These changes could lead to inflation, higher interest rates, more jobs, and basically a complete reversal of what has been. The bulls came out to play and have been quite exuberant, bringing the Dow a hair away from a record breaking 20,000.
The Dow Jones Industrial Average has climbed 8.5% since the presidential election, while the S&P 500 and the Nasdaq indexes have both gained more than 6% .
But Bank of America Merrill Lynch analysts led by Michael Hartnett, says that stocks and commodities could rise another 10% but after that, he wasn’t there could be a significant downturn.
I’m no stock expert, so I invited a financial analyst to be a guest on The Real Wealth Show. Anthony Saccaro is founder and president of Providence Financial & Insurance Services. He’s a financial planner and registered investment advisor and is a frequent guest expert on the Wall Street Journal, USA Today, Los Angeles Daily News, Pasadena Star News, and FOXBusiness.
Listen to this episode to find out what he’s telling his clients about how to protect their money from a potential fall-out in 2017.