Analysing the Trump effect, on wealth management

Analysing the Trump effect, on wealth management

President, Donald Trump, is obviously pro-wealth. You need only look at the Trump brand to see it’s built around the concept. The plutocracy he is working to establish is aimed at  creating an environment conducive to the creation of wealth for business owners and key individuals.

Most wealthy investors rely on wealth managers to develop and oversee their investment portfolios. Under Trumps rule, potential growth in pools of financial assets will certainly benefit investment professionals. Obviously, talented wealth management professionals will benefit, but so too will professionals involved in the development and delivery of investment products, like mutual funds, alternative investment funds and ETFs.

So, with more money to manage, thanks to the potential influx of wealthy investors with large portfolios, the future would appear considerably brighter for those connected to wealth management. However, there is a potential complication which needs to be considered… and that’s if Trump’s policies appreciably drive down the markets for a prolonged period of time.

The Trump administration is currently generating an abundance of economic and political uncertainty, that doesn’t look like ending anytime soon. This kind of volatile environment can be highly favourable to top-tier wealth managers. Professionals capable of helping clients cope with such uncertainty, through the implementation of leading-edge investment and planning solutions, are going to build hugely successful advisory practices. For instance, when political and economic uncertainty is high, there is plenty of evidence supporting the inference that high-net-worth investors rely heavily on the recommendations of financial professionals.

In short, under the Trump administration, Wealth Management is poised to become measurably more rewarding for those that understand the implications, and manage their practices appropriately.

Attribution: This post was written by CFWM. The original source content and full article can be found here: [web link]

 

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