What effect this election will have on taxes, the economy and the markets remain to be seen, but here are some thoughts.

Dear Clients and Friends:

2024 Election

Donald Trump has been elected President, winning both the Electoral College and the popular vote. What effect this will have on taxes, the economy and the markets remain to be seen, but here are some thoughts.

1) The 2017 Tax Cuts and Jobs Act will expire at the end of 2025. It lowered tax rates, raised deduction limits and increased the estate tax limits. Trump wants to make these permanent and has a good chance of doing most of that.

2) Increasing tariffs will be a harder sell, but some modest changes will be made. Since higher tariffs could cause inflation, the new administration needs to be cautious here.

3) Cutting government spending will be a priority, but implementation is always difficult. Lower taxes and tariffs are inflationary, so if he is not able to pass significant cuts, we could see interest rate remain higher than everyone expects.

4) The first year of a Presidential cycle has historically been the worst for equities. While Trumps policies are considered by many to be pro-growth, we are inclined to wait for a pull back in equity prices before we put new money to work.

To say the least, next year will be interesting. Please call us anytime with questions or suggestions.

Sincerely,

Dean S. Mailhes, CFA

Justin Mailhes, CFP