Securing Your Financial Future During Times of Political Volatility

When it comes to indicators of success, the Trump administration loves to rely on the health of the stock market. However, that indicator would suggest things aren’t going well; despite a 0.45 point rally in January, The Dow fell 8.2% through December, according to figures released by CNBC. With political turmoil continuing, markets will continue to be volatile and have an impact on many of the most popular savings and investment accounts. American citizens are looking for alternative ways to secure their own future.

With political turmoil continuing, markets will continue to be volatile and have an impact on many of the most popular savings and investment accounts.

Going straight to the source

One of the direct impacts of political uncertainty is a weak currency. This is true of the US, where the dollar is waning, and across the water, where the right-wing politics of Brexit have led to a weakening of the pound. A weak currency lends itself to improved precious metal prices, providing an opportunity for savers to invest in bars. This is a popular policy of late and could be a fruitful one; MacroTrends charts show that the current silver price of $15.79/oz is charted towards a peak. The same is true for many other precious metals, including gold.

Some classic investments are still solid

Many Americans have viewed the 401(k), and its Roth variant, as an inadequate replacement for pension funds. However, if smartly managed, a 401(k) can exceed the retirement benefit offered by a company pension. If you are in a position to fully fund a 401(k) and have the flexibility and time to pick correct fund, it remains a profitable option for securing your retirement.

Show quiet defiance

Common wisdom would suggest that a proper investing plan matches the priorities of the incumbent government. When analysis, including from The Hill, suggests that the same administration will retain its place in 2020, this would indicate investors should look towards regressive policies offered by the GOP and White House. However, this isn’t always the case. A great indicator of how industry and the public are ‘quietly protesting’ is through solar panels; despite heavy tariffs in favor of fossil fuels, renewable energy continues to grow and solar panels drop in price. What does this tell you? Look away from the isolationist economics of the current administration and take a global view to investing; that way you will find opportunities valued the world over and that will bring you dividends in the future.

The Trump administration has brought with it volatility that strikes fear into the heart of many investors, and causes worry for the money managers in every family. The key is not to get pulled in. Take advantage of well-constructed investment tools, look to alternate areas of investment and don’t be suckered in by official economic policy. Invest with your heart and mind.

Cindy Trillo

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