As the Trump administration prepares to take office, financial experts warn Americans not to panic about potential tariffs on imported goods. Instead of hoarding items that may become more expensive, they recommend building stronger finances.
According to economists, consumers would bear the costs of increased tariffs, leading to widespread panic over prices for everyday items like iPhones, bicycles, and appliances. However, financial advisers say this is a poor way to spend your money.
“The noise will die down, and you’ll need to focus on your own priorities,” says Bobbi Rebell, certified financial planner and personal finance expert at BadCredit.org. “Don’t ever spend in panic mode.”
Experts advise against making financial plans based on the prospect of tariffs, as the exact impact is uncertain. Instead, Americans should stick with saving and investing.
Here are some investment tips for a Trump world:
1. **Watch out for deregulation**: Trump’s plans to deregulate industries may favor financial companies.
2. **Consider artificial intelligence and cryptocurrency investments**: If these technologies increase in popularity, they could benefit utilities.
3. **Look at infrastructure upgrades**: Trump’s emphasis on upgrading infrastructure may boost the status of industrial companies like Deere and Caterpillar.
For retirees, consider investing in:
1. **Dividend stocks**: These provide a steady income regardless of market fluctuations.
2. **Buffered exchange-traded funds (ETFs)**: These allow you to invest in the stock market while limiting losses.
When it comes to saving, experts recommend not buying things earlier than planned due to fears about tariffs. Instead:
1. **Pay down credit card debt**: Use your money to improve your score and secure better loan terms.
2. **Negotiate with retailers**: Remember that original prices are often imaginary, so run your own negotiation online.
Experts believe Trump’s tariff talk is just “jawboning” and may not lead to significant inflation. With the right mindset and investment strategies, Americans can navigate a potentially volatile economic landscape.
Source: https://eu.usatoday.com/story/money/personalfinance/2024/12/06/tariff-fears-buying-save-invest-instead/76702578007