The Problem With Post Election Tariffs

02/12/25 • 47 min

There a problem with the post election tariffs! Today we talk about all the breaking political developments following Trump's election, his rapid use of executive orders and his quick use of tariffs. We have cautious optimism about some policies, but there is still always potential risks, with inflation and interest rates. We also challenge the common belief that homeownership is always an investment. Maybe there's something else that works for you.

Today we discuss...

How Trump's election has led to rapid political changes, with new developments emerging daily.
Media on both sides is seen as biased, and people should think critically instead of relying on propaganda.
The speaker is cautiously optimistic about Trump's direction, particularly regarding the economy.
Some of Trump’s policies, like lowering interest rates and tariffs, could contribute to inflation.
A discussion on real estate framed a home as a personal expense rather than an investment, challenging common narratives.
High property prices in some areas make renting more financially sound than buying, contrary to common beliefs.
Cutting government spending, a key Trump priority, could have significant economic impacts, especially in Washington, D.C.
Not investing in D.C. real estate due to potential government downsizing.
High housing costs are forcing younger buyers to relocate farther from cities.
Changing living patterns, similar to COVID-era shifts, are reshaping communities and work arrangements.
Remote work continues to impact commercial real estate as people settle into new locations.
Many Americans now struggle to afford a mortgage on a standard 9-to-5 job.
Housing affordability varies widely, with some states requiring nearly a full month's wages just for mortgage payments.
Burnout is highest in industries involving manual labor and customer service, with healthcare being particularly affected.
Economic frustration is driving shifts in political sentiment, as many voters seek disruption to the status quo.
Global markets are performing well despite U.S. concerns, with China and Europe showing strong gains.
Diversification remains key for investors, as even experienced professionals struggle to consistently pick winners.
The top 1% of Americans now control 30.8% of total U.S. net worth, up from 22.8% in 1989.
A recent poll shows mixed opinions on tariffs, with 47% supporting them to some degree and 53% opposing or unsure.
Cautious optimism is warranted, but assuming another major rally this year could be unrealistic.

For more information, visit the show notes at https://moneytreepodcast.com/post-election-tariffs-685

Today's Panelists:

Kirk Chisholm | Innovative Wealth Douglas Heagren | ProCollege Planners

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Today we discuss...

How Trump's election has led to rapid political changes, with new developments emerging daily.
Media on both sides is seen as biased, and people should think critically instead of relying on propaganda.
The speaker is cautiously optimistic about Trump's direction, particularly regarding the economy.
Some of Trump’s policies, like lowering interest rates and tariffs, could contribute to inflation.
A discussion on real estate framed a home as a personal expense rather than an investment, challenging common narratives.
High property prices in some areas make renting more financially sound than buying, contrary to common beliefs.
Cutting government spending, a key Trump priority, could have significant economic impacts, especially in Washington, D.C.
Not investing in D.C. real estate due to potential government downsizing.
High housing costs are forcing younger buyers to relocate farther from cities.
Changing living patterns, similar to COVID-era shifts, are reshaping communities and work arrangements.
Remote work continues to impact commercial real estate as people settle into new locations.
Many Americans now struggle to afford a mortgage on a standard 9-to-5 job.
Housing affordability varies widely, with some states requiring nearly a full month's wages just for mortgage payments.
Burnout is highest in industries involving manual labor and customer service, with healthcare being particularly affected.
Economic frustration is driving shifts in political sentiment, as many voters seek disruption to the status quo.
Global markets are performing well despite U.S. concerns, with China and Europe showing strong gains.
Diversification remains key for investors, as even experienced professionals struggle to consistently pick winners.
The top 1% of Americans now control 30.8% of total U.S. net worth, up from 22.8% in 1989.
A recent poll shows mixed opinions on tariffs, with 47% supporting them to some degree and 53% opposing or unsure.
Cautious optimism is warranted, but assuming another major rally this year could be unrealistic.

For more information, visit the show notes at https://moneytreepodcast.com/post-election-tariffs-685

Today's Panelists:

Kirk Chisholm | Innovative Wealth Douglas Heagren | ProCollege Planners

Follow on Facebook: https://www.facebook.com/moneytreepodcast

Follow LinkedIn: https://www.linkedin.com/showcase/money-tree-investing-podcast

Follow on Twitter/X: https://x.com/MTIPodcast

Previous Episode

The Soul of Wealth with Daniel Crosby

Today we talk The Soul of Wealth with Daniel Crosby, a behavior finance expert. Daniel shares his transition from clinical psychology to Wall Street due to burnout and his realization that finance is deeply rooted in human behavior. Highlighting the PERMA model from positive psychology, he emphasizes that true well-being requires balancing positive experiences, meaningful work, relationships, purpose, and personal growth—rather than just financial success. Daniel discussed how there has been a shift financial behavior, with younger generations prioritizing values-driven investing over pure profit. Join us as we discuss how to have a more fulfilling financial life! Today we discuss...

Daniel Crosby shares his background as a clinical psychologist who transitioned into behavioral finance.
Behavioral finance is central to investing, shaping individual and institutional decisions.
How people often optimize for material success (positive experiences) at the expense of deeper fulfillment.
The PERMA model, a framework for well-being that balances pleasure, engagement, relationships, meaning, and achievement.
How Wall Street culture can lead to extreme work habits, burnout, and misplaced priorities.
Crosby emphasizes the importance of integrating life balance early, rather than delaying happiness for financial success.
The role of money in social change, noting that financial tools have historically driven major civil rights movements.
The Montgomery Bus Boycott, sparked by Rosa Parks, demonstrated the power of financial pressure in the civil rights movement.
Younger generations increasingly recognize that spending money is a form of voting for the world they want to live in.
Gen X is often overlooked politically, partly because they tend to be cynical and disengaged from politics.
Financial decisions can be more powerful than political votes, as they influence the economy and corporate behavior daily.
Consumer spending decisions significantly impact businesses and shape the economy more directly than stock market trades.
Retirees often conflate net worth with self-worth, making it hard to enjoy their savings.
The balance between saving for the future and enjoying the present is a major financial conflict in relationships.
People tend to judge others based on their spending habits, viewing savers as dull and spenders as reckless.
Life offers no guarantees, so financial strategies should include both prudent saving and meaningful spending.
Overcoming personal financial biases requires studying market history and maintaining a long-term perspective.

For more information, visit the show notes at https://moneytreepodcast.com/the-soul-of-wealth-daniel-crosby-684

Today's Panelists:

Kirk Chisholm | Innovative Wealth
Barbara Friedberg | Barbara Friedberg Personal Finance
Phil Weiss | Apprise Wealth Management

Follow on Facebook: https://www.facebook.com/moneytreepodcast

Follow LinkedIn: https://www.linkedin.com/showcase/money-tree-investing-podcast

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Next Episode

The Best EFT Diversification for Your Investment Strategy

Graham Day joins us to talk about the best EFT diversification you can have in your investment portfolio. Graham shares his experience in the ETF world, from his start at PowerShares in 2008 to co-founding Innovator ETFs in 2017.

Innovator introduced defined outcome ETFs, giving investors structured returns with protection against losses that were once only for the rich or through pricey products. They developed buffer ETFs, which limit potential gains but provide set protection against downturns, helping manage risk while keeping investments easy to sell and tax-friendly.

The conversation looks at how these ETFs stack up against traditional financial products, their use in managing investment portfolios, and more.

Today we discuss...

Graham Day shares his background in ETFs, starting at PowerShares and later co-founding Innovator.
Innovator aims to make structured investment strategies more accessible through ETFs.
Defined outcome ETFs provide equity market exposure with downside protection.
Buffer ETFs rebalance annually without creating taxable events. Innovator also offers accelerated ETFs, which provide leveraged upside with downside limits.
Simplicity is key—structured products are often complex and difficult for advisors and clients to understand.
Innovator ETFs aim to provide strategic, risk-managed solutions that fit into modern portfolios.
Many advisors have used buffer ETFs as a bond alternative due to known downside protection.
Buffer ETFs performed well compared to both bonds and stocks in recent years.
Active management underperforms long-term, with 95% of managers lagging the S&P 500 over a decade.
Investors often underperform the market due to poor timing and emotional decision-making.
Buffer ETFs help investors stay invested by reducing the fear of market downturns.
Some investors allocate 20-25% of portfolios to buffer ETFs for meaningful impact.
Market predictions are unreliable, making defined-outcome strategies appealing.
Innovator aims to provide certainty in an uncertain investing environment.