The 45th President of the United States has been in the spotlight for his antics long before he became the leader of the free world in November of 2016. Donald Trump has been more than controversial thus far during his tenure. His words in addition to his actions have had monumental effects on Americans lives, specifically economics. The good news is there is plenty of opportunity to capitalize while the man known as the “CEO” President is in office.
For starters, In July 2017 Fannie Mae relaxed it standards for home buyers, now allowing prospective home buyers to apply for mortgages with debt-to-income ratios of 50%. The cut-off for qualification was formally 45%, however the new regulations will allow about 95,000 new applicants into the automated underwriting system or (AUS). This will give more Americans a chance at owning a key foundation to wealth in a home.
Since November of 2016 the S&P 500 has gained 12%, higher than its 8.47% rate of return year-to-date. Banks stocks saw the most benefit as many stocks in the financial sector doubled in value shortly after Trump was elected. Many Trump supporters bought into his campaign agendas aimed at healthcare reform, tax cuts and deregulation. Deregulation should make money easier to acquire for investment while tax cuts could help to save businessmen and investors money alike. All of this signals opportunity for you and me.
OK, I get it. Trump has said some things in recent weeks that have made many people lose even more faith in his ability to lead a nation. However, Trump being a businessman is why so many hold out hope for his potential policy changes. And although the markets have reacted unfavorably to his recent actions. Dips in the market always signal a time to buy stock at a discount. Remember to maintain a long term focus. The further you are from retirement, the more time you have to take advantage of market fluctuations.