Name: The Impact Trump Policies Could Have on Your Portfolio
Uploaded: 2017-02-17
Duration: 2 min 56 s

Dan, you managed about $ 600 billion in assets for your clients at Principal Financial. So let's talk about the stock market. What is your outlook for 2017? So I'm optimistic about 2017. I think we'll see economic growth, GDP north of 2 %. But probably south of 3 %. The big reasons why. There seems to be some untapped and some positive momentum on the part of consumers. This country, in the U. S ., about 70 % of the economy is consumers and they're opening up their wallets and they're buying things and upgrading homes and furnishing their homes. All those things that maybe were pent up in previous years. And so what does that mean for the markets? I think the markets go up. But at the same time I think it's not going to be one of those double digits sorts of gains. But if you could get 6, 7, 8 % growth in US equities I think we'd be well served by that. Now what could cause that not to occur? Is a great deal of uncertain about regulation, taxation, immigration. Those are all issues that'll be a big challenge for the economy to get over. You know for a while Wall Street was euphoric about this so- called Trump rally. And now it's been going Sideways recently. What do you think is the most important issue for investors right now? I think it's no different than what's been in the past. Business owners to make investments like clarity. What's gonna be my tax rate? How am I gonna get my plant and equipment treated from a taxation perspective? Am I gonna be tapped and impacted negatively by some sort of policy related to employment. Is there going to be a border tax, which would cause my imports to be more expense? The more clarity we can have on those key issues, the better off we're gonna be. So what changes are you making to your investment strategy at principal, given that we have a new president and some new policies coming along? Well we had a dramatically change in the investment strategy. We've always believe that a well diverse of file portfolio is the right next whether that's used leveraging of municipal or high yields of performance for securities in additional with our goal, traditional. So a diversified portfolio consistently we've done in the past will continue to be successful in the future. What could change that in 2017? A change in the tax policy. If all of a sudden, municipals were gonna be taxed differently going forward, that might have an impact and change how you went about investing that portfolio. What are the chances that we will see a change in taxes? I think 100 %. There's gonna be a change in taxes. And the question is, in most instances, there are gonna be winners and losers, by industry The impact that a swing in taxes could have on an organization is not insignificant. Put a border tax on a large importer that's a retailer, that'll have a significant impact. Likewise, if you're a net exporter, you're not importing as much, you could see very favorable taxes show up to your investors. [ BLANK_AUDIO ]