Financial Expert: Trump inauguration could leave markets with a lot to stomach

BATON ROUGE, La. (WAFB) – Following the Nov. 5 election, the market entered an impressive bull run. The DOW, a stock index comprised of 30 prominent companies in the U.S. soared to record highs.

However, that has since pulled back in recent weeks. Mawe Takyi, a managing partner for Asempa Wealth Advisors, voices that this is not out of the ordinary.

“The economy is still strong, the job and labor market is still strong,” says Takyi. “Sometimes economic data doesn’t always translate to the market.”

With a pullback in motion and President-Elect Donald Trump’s inauguration days away, financial analyst Fred Dent says the market will have a lot to stomach in the coming weeks.

“I think it is going to be turbulent,” said Dent. “Because you have over 100 executive orders lined up to be executed the day after the inauguration. Everything related to tariffs, taxation, immigration policy, and it’s going to take the market a little while to digest what all of this means.

Despite investor concerns for how all those policies could play out, Dent highlights the fact that returns come back to one major key. Company earnings.

“The one thing that investors can rely upon is that the stock prices of the businesses they own, and their 401K or other investments will be dictated by the earnings of those companies. How much they make in profit for providing a good or service that people want, regardless of who’s President.”

With many major developments spanning from manufacturing to data centers, Louisiana can take the state economy to new heights.

However, worries concerning affordability within the state’s housing market still linger for residents.

“Inflation is still creeping along, prices are rising. And housing prices, they either need to fall or mortgage interest rates need to fall and those have been particularly stubborn in staying high,” said Dent. “Until we see those rates come down, we’re not going to see a lot of movement in the housing market.”

Data from a recently released Louisiana realtors report indicates that sold homes dropped 2.6 percent, just over 38,400 at year end.

Costs rose just over two percent, with a median home sale price of $245,000.

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