After the latest presidential elections, the US has actually turned to its bifurcation point. It is crystal clear that Americans have to prepare themselves for a long period of changes that will transform society and the economy. Overtaking full control over your financial prosperity is not a desired but a must-have action to take already.
In this article, we will review the best investments for Trump presidency to safeguard your interest. These options suggested will help you and your family feel secure during the necessary but challenging period in US history.
Traditional Ways
There are several short yet most promising investment options to realize as soon as possible after Trump has entered office again:
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Stocks of corporations. In this case, you should be mindful of the types of companies to switch to in the first turn. During his first presidency, Trump made major tax cuts for corporations from 35% to 21%. He will likely adhere to the same strategy during his second term, just as with the tariffs. So, it is worth keeping an eye on corporations that could leverage from the next tax cuts or at least from the current corporate tax rate kept without changes.
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Investment in banks and financial companies. Trump has clearly highlighted these areas as the priorities for substantial deregulation. In this first turn, he is going to abolish the Dodd-Frank financial law. This and other changes can inspire major shifts in the financial markets and much faster growth of many players. If you feel fine with the risks, this is the right way to catch the wave.
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Real estate. It was Trump’s major for many years. Thus, he will not likely omit deregulations in this sector, knowing about its problems inside and out. Buying real estate is a classical solution promising an even higher return on investment during Trump’s presidency.
Not Widely Known but Very Promising Way
Triple Net Lease Properties (NNN) is among the best investments for Trump presidency not widely known to the public yet. Its obvious advantage is an opportunity to ensure a long-term and steady stream of funds. The NNN is a very low-risk option for an investor.
Under its terms, the tenant bears the greatest number of financial burdens. Apart from the pre-agreed rental amount, a tenant also covers a majority of all other operational costs, like annual property taxes, maintenance costs, and insurance. This solution is very appreciated among investors since they enjoy reliable financial returns over a longer period of time. This option is very resilient to market fluctuations, with minor to no landlord duties. The NNN option is a great way of portfolio diversification.
However, not all types of properties are suitable equally well for the NNN option. Location plays a crucial role in this context. There are several considerations in this case. Draw attention to those spots located close to some businesses or areas where they reside.
Prioritizing real estate located close to good traffic and in good accessibility overall is a workable solution as well. Another good idea is buying real estate next to the growing districts, recreational areas, shopping locations, etc.
Another important consideration is prioritizing areas with high demand on the NNN. This means you will be able to find a new tenant if the current one fails to fulfill the obligations under the contract. If you need several examples, here are the areas with a high NNN investment potential:
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Salt Lake City, UT
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Portland, OR
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San Antonio, TX
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California Metro Areas
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Seattle, WA
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Austin, TX
There are also more recommendations in favor of choosing the best NNN investment options. Keep in mind a business type. When you utilize the NNN options, consider business types operating in a chosen location. Some businesses have consistent potential for high yields regardless of the economic situation. Among the good examples to mention are grocery stores, convenience stores, drug stores, medical clinics, etc.
When you choose a potential tenant, make sure it has a good previous history of paying rent as agreed. A potential candidate should always pay tax and insurance payments on time as well. Checking these aspects will make you feel safe and release from any extra burdens in the future.
Summing up the essence of the NNN investment option, it is reasonable to note that rental payments, in this case, are a bit lower compared to traditional lease contracts. However, the obligations of a landlord are minimal who still remains responsible for controlling the terms of the commercial lease contract, including its termination. On balance, it is among the best investments for Trump presidency due to its high resilience and stable income stream.
Prepare Yourself: Here’s How
Before you start making any choices in favor of certain investment options, accomplish several arrangements in advance:
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Reassess your long-term investment strategy. During the upcoming market fluctuations and overall volatility – which are inevitable – reassessing portfolios by adding more resilient long-term investments is essential. Index funds and dividends will serve as sufficient alternatives for this purpose, helping to mitigate the risks of market volatility.
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Repay your mortgage. Trump’s fiscal arrangements, including tax reduction and tariffs, may bolster inflation. It may negatively impact – even to say, be totally unpredictable – mortgage rates. They could raise, speaking more specifically. Therefore, repaying your mortgage, if any, is the best solution to take before significant fluctuations have started in the market.
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Reassess your health insurance plan. The healthcare costs will likely be shifting in the short-term perspective. The first plan of the new administration, in this case, is categorizing the enrollees into various risk pools as well as offering insurance plans based on respective health risks. To safeguard your interests, consider long-term care insurance and keep on track of the upcoming changes.
Non-Standard yet Effective: Prison Stocks
Unlike any other presidency, Trump’s is marked by mass deportations. This trend results in the growth of the companies that render support services for prisons, immigration centers, community centers, and similar facilities.
Trump will more likely increase detention utilization during the next five years. Thus, investing specifically in the stocks of for-profit prisons is a good choice. GEO Group is an option whose popularity is rising already.
Tips for Effective Choices and Risk Management during the Trump Presidency
This period will be unlike any other. Making yourself prepared is a wise solution, especially at the early start. Here are top tips to secure your future for the next five years or even more:
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Diversification is crucial more than ever. It will never be secure from the losses entirely. However, it will drop it to the lowest level possible. Due to the unknown nature of future market changes, it will be difficult to predict how they will affect the markets, companies, and even the whole country. Asset allocation is a good way out of unpredictable situations.
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Stay domestic. Since Trump’s policy is very protectionist, prioritize all possible domestic investment options. High tariffs on the imports of goods will strongly benefit domestic manufacturers, boosting their sales. Therefore, it is reasonable to invest in the stocks of the companies that have the highest potential of leveraging from this same ”new” tariff policy.
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Invest in crypto. Trump has already highlighted this area as his major priority. His and Melania’s meme coins only confirm the great industry’s value for the upcoming five years. The role of Blockchain has been highlighted as well. Trump is even going to create the crypto national reserve. If you were skeptical or not interested in cryptos before, now is the right time to start.
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Opt for resilient and long-term options. Innovations may inspire significant positive shifts but are always risky. Failure will cost a lot. Keeping this in mind, it is better to prioritize long-term investment options with a low level of risks and volatility, like the NNN which is among the best investments for Trump presidency because of its resilience.
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Keep on track with the updates and request professional consultations, if needed. The next five years aren’t likely marked by predictability yet will open a great room for innovations. If any new trends emerge, but you lack knowledge of the dynamics that current ones have, do not hesitate to consult professional advisors.
Bottom Line
America is turning into a new era with great changes expected. Now, it remains unclear how they will affect the markets and companies. These are equally huge opportunities for growth or the risks of the same failures.
Keeping these considerations in mind, it is essential to repay your mortgage, reassess insurance plans, and diversify your investment portfolio. The latter will make you more financially resilient toward upcoming challenges. Opt the investments in domestic companies since Trump will be keener on protecting American manufacturers and service providers during all five years of his presidency.
Cryptos will also remain among the top priorities for the new president. He has already decided to create the national crypto reserve. If you are not keen on this idea at all, investing in stocks is an always-winning alternative.
If you would like to have some long-term investment options resilient to most market fluctuations, the NNN contracts are among the best investments for Trump presidency. These agreements provide landlords with a steady income with minimal obligations on maintenance of their commercial property. Take into account these recommendations, helping to survive a complicated initial period of the reforms and live a wealthy life further!
FAQ’s
1. How might potential changes in corporate tax policies under Trump’s administration influence specific sectors or companies?
If Trump implements corporate tax cuts or rolls back regulations, several sectors could benefit:
- Energy & Oil: Policies favoring domestic production and reduced environmental regulations could boost oil, gas, and coal companies.
- Financial Services: Deregulation could benefit banks, insurers, and investment firms by reducing compliance costs and increasing profitability.
- Manufacturing & Industrials: Lower corporate taxes and incentives for domestic production could help U.S.-based manufacturers.
- Defense & Infrastructure: Increased military spending and infrastructure projects could drive growth for defense contractors and construction firms.
- Real Estate & NNN Investments: Potential tax incentives and pro-business policies may increase demand for commercial properties, benefiting NNN investors.
2. What are the potential risks associated with investing in banks and financial companies amid anticipated deregulation efforts?
While deregulation can enhance profitability, there are potential risks:
- Market Volatility: Less oversight can lead to riskier lending and investment practices, which may increase financial instability.
- Economic Cycles: If deregulation encourages excessive risk-taking, banks could face challenges during economic downturns.
- Public & Political Backlash: If policies are perceived as favoring corporations at the expense of consumers, there could be regulatory reversals or stricter policies later.
- Interest Rate Sensitivity: Financial companies are heavily impacted by Federal Reserve policies. If inflation remains high, interest rate hikes could affect lending and profitability.
3. How can investors effectively assess the suitability of Triple Net Lease (NNN) properties in various locations?
Investors should consider the following factors when evaluating NNN properties:
- Tenant Quality: Look for creditworthy, recession-resistant tenants such as pharmacies, grocery stores, and medical offices.
- Lease Structure: Ensure leases have built-in rent escalations to protect against inflation.
- Economic Strength of the Market: Invest in areas with strong job growth, population increases, and business-friendly policies.
- Industry Stability: Sectors like healthcare, logistics, and essential retail tend to perform well regardless of political changes.
- State & Local Tax Policies: States with lower taxes and fewer regulations may offer better long-term investment potential.