What Does Another Donald Trump Term Mean For Your Money?

As the dust settles — and, most certainly, gets kicked up again day after day — on Donald Trump’s victory, let’s consider what it means for your money in a variety of areas, particularly from economic and investment perspectives. 

First and foremost, for investors, The Juice is making an educated guess that it will mean little, if anything. 

Because—

• In year one post-election, stocks average an 8.3% increase.
• In year two, they go up an average of 3.4%.
• In year three, they pop most handsomely by an average of 14.7%.
• In year four — so, in an election year — stocks head higher by, on average, 9.1%.

Of course, in the next election year — 2028 — the Republicans will have to find someone not named Donald Trump to run. 

In response to Trump’s victory, the stock market rallied Wednesday. Super healthy gains across the Dow, S&P 500 and Nasdaq and big wins in big-name stocks, led by Tesla (TSLA). 

Tesla rallied by about 15% the day after the election and probably is the best evidence for investors that The Juice’s advice of buying the stock market leaders regardless of who’s in office is damn good advice. 

To be clear, TSLA probably would not have run so hard if the Democrats won. However, one day means little for long-term investors. TSLA will remain volatile and dip — and sometimes dip hard — providing attractive entry points and additional buying opportunities for buy-and-hold investors. 

But, over time, stocks like TSLA will continue to go up in a straight line. And that’s really what matters. 

While investors might perceive Trump as more pro-business than Harris, it’s not like the Democrats aren’t ultimately behind many of the things Elon Musk is doing and wants to do, particularly his initiatives related to the environment.

Like we said last month when we reiterated our bullishness on Tesla:

Say what you will about Elon Musk. We’ll just say we long for the days when the guy wasn’t such a dichotomous, if not divisive enigma. But, however you feel, there’s no denying that his company — Tesla — is at the center of a huge story. It is the stock that leads the electric vehicle space. In many ways, it created the space. A space that can help drive America’s economy going forward. It could even, in many ways, transform society.

Since we first doubled down on TSLA, the stock is up approximately 27%. 

Use Tesla as a symbol for broader stock market and economic bullishness. 

Because — really — The Juice thinks Donald Trump can only get in his own way on the stock market and economy. 

A few points to that end:

• Trump wants to extend his tax cuts. 

Aside from the fact that he doesn’t plan to raise taxes on the wealthy like Harris proposed, few people will argue with this. From everyday workers to large corporations. 

As part of his tax plan, Trump wants to keep the corporate tax rate at 21%. Trump’s tax cuts, enacted in 2017 and set to expire at the end of 2025, brought that number down from 35%. In some cases, we could see the corporate tax rate as low as 15% under Donald Trump. 

So, what do we mean about Trump getting in his own way on the economy? 

The idea to tax the hell out of China and other countries doesn’t sit well with most economists. And it shouldn’t. Inflation is — by all accounts — moderating, if not headed to where the Fed wants it. In our view, tariffs will almost definitely increase prices in many areas for the American consumer. 

We have to think Trump will receive pushback from large corporations and others on this. And he ought to listen. Because if prices start going up in stores such as Walmart and Target, it will be easy to assign blame to Trump and on tariffs. Many people voted for the guy because they think he will “lower prices” (which really reflects a basic view of economics). If the reverse happens, they’ll feel like they’re not getting what they voted for. 

Another related point: Trump wants to repeal the CHIPS Act. This is a bipartisan bill, signed into law by Joe Biden, that encourages semiconductor chip manufacturing in the United States. The act incentivizes companies to build chips in America. And it’s working with firms from Taiwan Semiconductor Manufacturing (TSMC) to Micron (MU) investing in many red states as well as Upstate New York and California. 

Trump argues that you don’t need to provide financial incentives to get firms from overseas (and, presumably, the United States) to bring manufacturing to America. Instead, you need to tax (in the case of, say, Chinese companies) tax their exports to coerce them into bringing production to the United States. 

Here again, that’s a basic view cloaked in tough talk that will only hurt Trump on the economy and, in some circles, with corporations and investors. In many cases, Trump will be better off leaving well enough alone and picking up where he left off with the tax agenda he implemented during his first term.  

The Bottom Line: Regardless of what Trump does or doesn’t do, The Juice continues to think the stock market is one of the best places, alongside an increased allocation to alternative investments (see today’s Freshly Squeezed section below), for your money. We would be saying the exact same thing had Kamala Harris won the White House. 

The amount of personal income tax you pay is unlikely to change much, if at all. Here again, contrary to the hype, this was likely going to be the case under Harris. 

The big wildcard is if Trump keeps his word on things like tariffs and extends this logic to initiatives that are working, such as the CHIPS Act. If Trump starts messing around in these areas and his actions impact the pocketbooks of the American consumer, The Juice thinks the incoming president will quickly blow much of the political capital he has built up over the last few years.

• Wealthy, Young Investors Are Buying Alternative Investments
• Dive into Expert Picks – We Spill the Best Daily!
• Keep Buying This Magnificent 7 Stock
• Stocks and bitcoin jump after Trump’s victory. So do worries about inflation as Dow surges 1,400