Another presidential election is on the horizon and financial advisers are weighing the possibility that Donald Trump will secure the Republican nomination and win a second term in the presidency. Some advisers believe the chances of a Trump comeback are significant. They are recommending clients make certain financial moves now to protect and grow their money in the event of a Trump return to the White House.
Find out: How a Trump victory in 2024 could affect your retirement savings
Learn more: 6 genius things all rich people do with their money
While no one knows for sure what the future holds, preparing your finances can help you navigate a potential roller coaster ride over the next few years. You can strengthen your financial plan today regardless of who occupies the Oval Office.
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Target stocks that benefit from tax cuts
With corporate taxes a focus in Trump’s first term, further cuts could come in a second term.
“One of the important moves during Trump’s previous term was the reduction of the corporate tax rate from 35% to 21%,” said Scott DePeralta, president of Scott DePeralta Consulting. “This was a game changer for many corporations. If you’re looking forward to another Trump term, it’s worth keeping an eye on companies that could enjoy further tax cuts or at least benefit from keeping the current rate.
Stocks of high-tax companies could see gains if Trump pushes tax rates even lower.
Read more: How rich is former president Donald Trump?
Invest in banking and financial services stocks
During his first term, Trump took steps to loosen financial regulations put in place after the 2008 crisis. If re-elected, he could go much further in rolling back oversight of banks and Wall Street.
“Trump has made no secret of his desire to dismantle the Dodd-Frank financial reform law,” DePeralta said. “If he succeeds in doing this, we could witness a significant deregulation of the financial sector. This could potentially lead to a run for banks and other large financial institutions. If you have an appetite for risk, investing in these stocks could be just the ticket.”
Bank and financial stocks could rise if Trump succeeds in rolling back regulations in a second term. That would benefit big players like JPMorgan, Wells Fargo and Citigroup. However, lower regulations also increase risk across the board, so be careful if you follow this approach.
Invest in real estate
“Let’s not forget real estate, Trump’s own playground! said Deperalta. “He is a real estate tycoon and his policies have generally favored this sector. So if you’re predicting a Trump win, it might be worth considering putting some money into real estate investment trusts (REITs) or directly into properties.”
Given Trump’s extensive real estate background, it’s reasonable to expect continued policies aimed at strengthening real estate markets. Real estate is an area that Trump understands well, and he enacted favorable policies for the sector in his first term. Investing in REITs or actual properties could be rewarding if that support continues with Trump back in office.
Remember that no one knows the future
“While we are talking about all these possible moves, I want to emphasize that they are purely speculative, based on Trump’s previous tenure and campaign promises,” DePeralta said. “The actual outcome could change greatly based on a number of factors, including the global economic situation, ongoing legal battles and specific policies enacted during his potential second term.”
Everything discussed is speculative and what will actually happen is anyone’s guess. These moves could make sense if trends from Trump’s first term continue, but you should never bet big on either scenario. The wisest course is to stick to smart fundamental investing principles, no matter who is in the White House.
“This is my most important piece of advice: Don’t put all your eggs in one basket,” DePeralta said. “Regardless of the political climate, diversifying your portfolio is always a smart move. Also, remember that political outcomes can be unpredictable and making drastic changes based solely on election results may not be the best strategy.”
While some tactical shifts in line with expected politics make sense, stay balanced and keep perspective. Remember your risk tolerance and long-term goals.
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This article originally appeared on GOBankingRates.com: I’m a Financial Advisor: 4 Moves I’ll Make If I Think Trump Will Win the Election
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