Riding the “Trump Bumps” Beyond Trump
How entrepreneurs, independent contractors, and others can take advantage of the latest market rallies and retreats
Love it or hate it, the Donald Trump economy is taking shape. The Trump financial markets are at least. And the multiple “Trump bumps” are not exclusive.
Alternative assets like crypto are showing massive gains. Bitcoin is bouncing above $95K with a total market value of nearly $2 trillion (too many firsts to fit here). U.S. stocks are soaring. The S&P 500 is at a record high and could surpass 6,600 in 2025. Interest rates and inflation are lingering question marks. Tariffs are a huge point of tension.
As with many others, the outcome of the 2024 U.S. election is not one I was voting for. I’m a lifelong believer in democracy, diversity, education, climate action, and conscious capitalism. On the economic side in America, wealth equity is going to be an even bigger focus in the years ahead.
Professor Scott Galloway broke down how the post-election stock market rally “is a transfer of wealth from the young to the old.” That’s a very keen and alarming observation. At the same time, there are many ways to further spread out wealth. We have countless windows at our fingertips to invest and profit in measured amounts—from traditional securities and alternative assets to impact investments and crowdfunding projects.
This can be especially beneficial for entrepreneurs and independent contractors with multiple income sources and an understanding of investing and finance, including how to manage risk and avoid scams. Below are some potential ways to earn profits with a purpose. Just remember that all investments carry risks.
Open Markets for Many
You don’t need to be a professional day trader to spot investment windows. Assets that are steadily rising or expected to rise are likely to dip, creating an opportunity to buy at a relatively low-risk price. If you're worried about losing money you can quickly sell. Asset spikes are often an opportunity to sell at a profit.
For anyone who may feel conflicted for personal reasons: There’s no reason to be ashamed of legally benefiting from “Trump bumps” now that the election is over. The same applies to staying ahead of future “Trump slumps.” It doesn’t matter how strongly you feel about Donald Trump or Kamala Harris when it comes to being smart with money.
Bitcoin market summary from TradingView on 12/4/2024
All it takes to start investing is a curious and committed mind, some disposable income, and reliable information. Even small side savings can be turned into well-timed investments that help drive personal and business financial growth.
You can set up multiple IRAs, for instance. You can also put spare capital into mutual funds or exchange-traded funds (ETFs) if you’re looking to autopilot. On the debt side, even with higher interest rates, there are a growing number of options. Smart borrowing, including microloans, can help many entrepreneurs turn short-term debt into long-term profits without burning through cash.
The world’s most adept and agile investors can turn $50K into $1 million or more. Don’t let a bigger stakeholder tell you otherwise. There are gains to go around in many sectors and more gains to come across banking, capital markets, crypto, and venture capital.
Follow the Flow of Assets
Watching where trillions of dollars go is always better than doom scrolling.
⚡️⚡️ Bitcoin’s value more than doubled this year and is up about 40% since November 5th. Bitcoin has dipped and rebounded a few times since brushing $100K last month with eyes on its next milestone. Other crypto assets like XRP have seen their values more than quadruple in just a few weeks. Be aware that buying and owning crypto has environmental impacts due to its high energy use. Warren Buffet and others question crypto’s true value. The crypto market shows quite a lot in 2024.
🔥🔥 S&P, Dow Jones, and Nasdaq stocks are high and rising with some notable spikes. Stocks had their best month of the year in November as the S&P broke 6,000. December is looking promising too. The Federal Reserve typically has a bigger say in equity markets than the U.S. president. We’ll see how that plays out this time.
❄️❄️ There is a natural cooling off as investors sell when assets reach new highs. Crypto and stock gains could further soften if Trump doesn’t follow through on certain promises. Always think ahead when investing either way.
S&P 500 market summary from TradingView on 12/4/2024
🌊🌊 Liquidity across banking and capital markets is way up from the pandemic. Looser regulations under Trump would likely amplify this. Interest rates could be a wild card depending on how you invest. Mortgage rates are at a new norm and expected to stay above 5.5% in the year ahead. Savings—including IRAs, CDs, high-yield savings, and money market accounts—can generate strong fixed returns when rates are elevated.
🌤🌤 Venture capital funds are ripe for many seasoned investors and entrepreneurs. The VC arena is a private trillion-dollar industry fueling marketable innovations. It’s also an exceptionally tilted playing field in the U.S. with men overseeing more than 98% of assets under management. This creates a huge opportunity for those with enough capital to invest in diversifying VC.
🌲🌲 If the U.S. dollar rises under Trump it will open more windows to profit from buying and borrowing other currencies like the euro and the yen, among other upsides. Experienced investors can use derivative trades such as futures and currency swaps to boost their returns.
🌎🌏 On the macro level, short-term growth in trusted financial markets in the U.S. and other countries looks very likely. But tariffs remain a critical factor that could impact everything from jobs to the costs of everyday goods.
Will the largest financial markets go up or down from here? The next few years are anyone’s guess. Just always beware of bubbles, financial scams, and fool’s gold. Make sure to also start small if you’re new to investing.
Think Big Even When Investing Small
Come this January it’s going to be a whole new playing field—one that will need to be repeatedly gut checked and proactively regulated to serve a greater good.
Housing creation, capital markets, the wild crypto world, and growth opportunities for entrepreneurs are four areas I’ll be watching as a writer and learning investor. Some companies and organizations are already capitalizing on Trump’s win. Others are feeling the heat before Trump even takes office.
Here are some recommendations for those who want the good, the bad, and the ugly across a range of industries:
If you’re looking for insights into investment opportunities and pitfalls and general market trends, a lot can be absorbed from Joe Weisenthal and Tracy Alloway of Odd Lots at Bloomberg, Wei Li at BlackRock, Robert F. Smith of Vista Equity Partners, Anthony Pompliano of Professional Capital Management, Phil Rosen of Opening Bell Daily, and many other enterprising journalists and insiders.
If you’re committed to tackling gender and racial disparities and evening the playing field for underrepresented entrepreneurs, there’s a lot to learn from Arian Simone of Fearless Fund, Elizabeth Gore of Hello Alice, Luz Urrutia of Accion Opportunity Fund, Eve Picker of Small Change, and Geri Stengel of Ventureneer, among many others.
If you’re invested in climate solutions, new opportunities are frequently shared by Brendan Wallace of Fifth Wall, Jay Lipman of Ethic, and others in eco-driven venture capital.
These are some of the people and organizations I follow on LinkedIn and other platforms for logical answers. All of their work obviously goes beyond Trump’s return to Washington.
Invest with Impact and Integrity
There’s a lot for Americans and others to be concerned about over the coming years. Further race and class division, women’s reproductive rights, Russia and North Korea. The list goes on regardless of where you stand politically.
The most commonly shared interest is to see our country’s economy grow further. That includes low unemployment and low inflation. If we could break down barriers like access to capital and achieve greater equity across the board, investment and financing opportunities would ripen for many others in the U.S.
More money in capable hands can help encourage a more inclusive future, especially when a larger majority has financial freedom and financial control.
Do careful research and talk to a trusted financial professional if you’re new to investing. All investments carry risks and financial scams are rising (unrelated to Trump’s reelection.)
#beingsmartabouttrump #powertothepeople