We are 68 days away from Donald Trump moving into the White House, but almost immediately after he won the election, the economy had its say about him.
The US and global markets have been doing well.
Once he takes office, though, Trump has a broad agenda that touches on renegotiating trade deals, lowering taxes and creating well-paying jobs.
Those movements could have big implications for California's economy, which is already so big that it'd be the sixth largest in the world if we were a separate country.
Take Two brings you some advice on what California industries will stand to gain and lose the most in the coming years, and what you can do to prepare yourself financially.
- Raphael Bostic, chair of governance at the USC Price School of Public Policy
- Delia Fernandez, certified financial planner with Fernandez Financial Advisory in Los Alamitos
- Chris Thornberg, founding partner of Beacon Economics
Can a Trump presidency do anything to affect California's economy? Either way, up or down?
Chris: "When you think about the Trump presidency, the question you have to ask yourself is, which Trump is going to show up in the White House? It's interesting you should bring up the stock market, yes the stock market did jump because what the stock market sees is tax cuts, fiscal spending such as infrastructure, probably all being fueled by deficit spending at the federal level. But these are all stimulative, these will all make the U.S. economy grow faster and that in turn, will benefit California. Now go to the other side, the other Trump so to speak. That Trump wants to throw three million people out of the country. That Trump wants to create trade wars with Mexico, Canada and China. That Trump would slow down the economy and that would harm California. So, I think myself, like many economists, we're all sitting here wondering, well, which Trump is going to show up?
Delia, what are your clients saying? Not fancy experts, real people. What are they saying?
Delia: "They're concerned, I've had the people closest to retirement or in retirement are probably the most concerned. Certainly, we've had a very tumultuous election period and campaign and so they don't like the rhetoric and so they want to come in and find out what their situation is going to be like. I think when we do any kind of planning we look at best case, worst case, most likely case. I've had just a handful of people completely sell out and they did it a couple weeks ago. It was jut because of politics and now, I've even had people who are republicans who have voted for Trump who are also concerned. So, I think we just don't know how it's going to settle down yet."
...We were at a change point anyway. We are coming down from reducing all of this debt after 2008. We have a healthier economy and we were looking at raising interest rates anyway. That was going to be a change for everyone, although we weren't looking at the fiscal stimulus, that we're now looking at, possible in this administration. So, I think that we were going to have to do some adjustments and I just think people are going to be a little bit on the edge of their seats until they see how it shakes out."
During the campaign, President-elect Trump complained that home ownership rate is at a 51-year low, what has he proposed that could be a benefit to listeners out there, maybe trying to buy or sell a home?
Raphael: "As you've heard throughout this whole conversation: we don't really know. There's a lot of things he could do. He's talked about reducing regulation, he's talked about trying to promote more lending by the banking industry but we've been very short on specific proposals and there's a real question as to whether the home ownership should go up too much more from where it is now. So there's a school of thought which would say that one of the reasons why the crisis was so bad was because we got a bunch of people in home ownership in ways that didn't work for them and were'nt sustainable and so working too hard to push to get people into home ownership could put us right back where we just came from which is a real concern..."
To hear the full segment, click the blue audio above.
Bonus Audio: To hear the conversation in its entirety, click the link beneath the blue play button.
This post has been updated.