What Does Trump In The White House Mean For Me? (Spoiler: Not A Whole Lot)
The U.S. elections are finally over, and now the talking heads have moved on to discuss the minutiae of Donald Trump’s transition plans.
Meanwhile, friends, colleagues, readers, and consulting clients are writing each day to ask what Trump’s victory means for me…
How am I adjusting my holdings, my investment plans, and my Plan B in preparation for Trump’s tenure?
I’m not.
My plans and strategies won’t change.
That’s the point and the beauty of an international investment and lifestyle portfolio. It doesn’t hinge on what this or that particular president of the United States or of any other country gets up to… especially in the short-term.
So while Trump has so far had a positive impact on the U.S. dollar and the U.S. stock markets, my personal diversification strategy hasn’t and won’t change.
While the U.S. dollar is strong, I’m buying as many non-dollar assets as I can. Europe and Colombia are my priority focuses, but other countries are on sale right now thanks to the soaring Greenback, as well, including Canada, Mexico, Australia, and New Zealand.
However, I’m not moving all my assets out of U.S. dollars. The dollar could remain strong for some time thanks to an expected increase in the U.S. interest rate by the Fed… or it could drop significantly if the foreign money flooding into the U.S. stock market tapers off by Inauguration Day, as some pundits expect it will.
Either way, I’m not worried… and, again, my course remains unaltered.
Diversify: An Incredibly Easy Method That Works For All
If you’re properly diversified, you don’t need to worry either.
As one economy or currency falls, another is moving up. Even during the global real estate crisis of 2008/2009, when it seemed like things were bad all over, some markets were affected far less than others and recovered quicker.
My big-picture strategy has been set for more than 20 years… since I first copped on to the importance of spreading whatever I had around as much as possible… including and especially as much as possible beyond and across international borders.
My global diversification strategy is a constant. What does change all the time are my target markets. I’m constantly on the lookout for windows of opportunity created by currency exchange rates, changing interest rates, expanding middle classes, increasing tourism, foreign investment flows, the path of progress, and moments of crisis.
If you’ve yet to begin pursuing this strategy, you could rightly be preoccupied trying to predict what President Trump will mean for your investment portfolio and your future.
If that’s the case, I can’t speak more plainly or with more urgency:
You need to take control of your situation.
If you are not diversified across international borders and beyond any single market, you are at the mercy of the factors in play in that single market… meaning you and your money are vulnerable.
If you’re an American, you shouldn’t be thinking about what to do to prepare for or profit from Trump in the White House.
If you’re an American, you should be working overtime to take advantage of the current strong U.S. dollar. Your super-strong Greenbacks are allowing you to buy foreign assets at serious discounts.
And now you also have a tax-friendly president who isn’t going to reduce the lifetime exclusion for estate taxes, meaning your window to maximize your estate plan remains open.
In addition, I’m hearing whispers that FATCA legislation could be repealed. This is rumor at this stage. However, if that were to happen, Americans could end up with more offshore freedom than they’ve had in years.
I’ll keep my fingers crossed for that.
While I carry on investing and living as I have been for the past two decades… with a single driving agenda in mind:
Diversify!
It’s what allows me to sleep well at night no matter who’s at home in the White House, the Élysée Palace, or the Kremlin…
Lief Simon