As the 2024 election results were released, the stock market has shown significant changes. This is due to sellers and buyers anticipating new economic policies. Thus, many are trading various stocks as there is uncertainty for what is to come with Donald Trump’s Presidential Inauguration.
Different sectors of the market have benefited from the election results including technology and Artificial Intelligence, while others took a toll. This has left many wondering, is this a prime time to invest in stocks? How can we predict what the stock market will look like in the short and long-term?
“There’s been a big jump in the economy due to optimism about the America first approach, which is tariff centric as opposed to subsidy centric. Crypto currency went up because Trump likes crypto currency [and] many people made NFTs that showed him as a superhero,” Brandeis said.
Senior Owen Brandeis is currently enrolled in Monte Vista’s personal finance course and is planning on a future career in business or finance at Emory University.
Although the stock market has shown a steady increase over the past couple of months, many are left uncertain with Trump’s Inauguration in January, 2025. Personal finance teacher Aimee Kerr shared her perspective on the stock market.
“The markets like stability. They like to know what’s going to happen because then they can anticipate the earnings for companies,” Kerr said.
Kerr explains that when the stock market is going through uncertainty and unpredictability, they tend to be more volatile. Furthermore, Trump may carry on some policies that will extend low taxes for corporations, which will presumptively reduce business taxes. Overall, investors saw that the market took in a lot of earnings after the election results were released.
“We don’t invest to buy low or sell high; we’re investing for the long term. So you want to get in. People who wait and try to time the market, they miss the market. I would say yes, it’s an ideal time [to invest] even though we might think prices are high. We want to get in and buy good companies,” Kerr said.
Despite what may be happening with the market, Kerr explained that when one looks at a graph they don’t know that they’re seeing a low point in a graph until it starts increasing.Thus, Kerr believes that it’s a smart financial strategy to invest in the stock market in a consistent dollar amount each month, regardless of how the market is doing.
