<p>Major changes are likely coming for the U.S. economy. Will you be ready for them?</p><p>We have a new president who’s pledged to overhaul the economy. How will that affect investors and the markets? Mark Biller joins us today with a plan for managing <i>“anticipated disruption.”</i></p><p>Mark Biller is Executive Editor and Senior Portfolio Manager at <a href="https://soundmindinvesting.org/?%24web_only=true&amp;_branch_match_id=1295850508872026842&amp;utm_source=moneywise&amp;utm_medium=moneywise&amp;_branch_referrer=H4sIAAAAAAAAA8soKSkottLXL8ozMsnWSywo0MvJzMvWT9Uvzi%2FNS8nNzEvJzCtLLS7JzEsHAC68E5srAAAA">Sound Mind Investing</a>, an underwriter of <a href="https://www.faithfi.com/show">Faith & Finance</a>. </p><h3>Learning from the Past: Market Trends in Review</h3><p>Before diving into predictions, it’s essential to recognize the value of reviewing recent market trends. Forecasting is often unreliable, so <a href="https://soundmindinvesting.org/?%24web_only=true&amp;_branch_match_id=1406008510245626691&amp;utm_source=moneywise&amp;utm_medium=moneywise&amp;_branch_referrer=H4sIAAAAAAAAA8soKSkottLXL8ozMsnWSywo0MvJzMvWT9Uvzi%2FNS8nNzEvJzCtLLS7JzEu3rytKTUstKgIy45OK8suLU4tsnTOK8nNTAU0jnGBFAAAA">Sound Mind Investing</a> focuses on building robust portfolios that can withstand a variety of market conditions.</p><h3>Key Observations from 2024:</h3><ul><li><strong>Strong Stock Market Performance:</strong> 2024 was a banner year for stocks.</li><li><strong>Struggles in Bonds: </strong>Higher long-term interest rates created challenges for bond investors.</li></ul><p>Rather than predicting, <a href="https://soundmindinvesting.org/?%24web_only=true&amp;_branch_match_id=1406008510245626691&amp;utm_source=moneywise&amp;utm_medium=moneywise&amp;_branch_referrer=H4sIAAAAAAAAA8soKSkottLXL8ozMsnWSywo0MvJzMvWT9Uvzi%2FNS8nNzEvJzCtLLS7JzEu3rytKTUstKgIy45OK8suLU4tsnTOK8nNTAU0jnGBFAAAA">SMI</a> uses trend-following strategies, aligning portfolios with market behavior to enhance resilience against uncertainties.</p><h3>What Could End the Bull Market?</h3><p>Bull markets typically end due to two primary catalysts:</p><ol><li><strong>Federal Reserve Rate Hikes:</strong> With recent rate cuts, a pivot to hikes seems unlikely.</li><li><strong>Economic Recessions:</strong> Despite fears, current conditions—strong GDP growth, low unemployment, and robust balance sheets—make a near-term recession improbable.</li></ol><p>However, investors should remain prepared for routine market corrections (10-15%), which are typically short-lived and not worth major portfolio adjustments.</p><h3>Trump 2.0: Policy Changes and Market Impacts</h3><p>President Trump’s second term brings both optimism and uncertainty. Business-friendly policies like tax cuts and deregulation are expected to boost growth, but his stance on disrupting global free trade could create volatility.</p><h3>Key Policy Areas to Watch:</h3><ul><li><strong>Immigration and Tariffs:</strong> Potential economic implications tied to trade disruptions.</li><li><strong>Deficit Reduction:</strong> Balancing growth-oriented spending with inflationary risks.</li><li><strong>Energy and Taxes:</strong> Initiatives that may shape inflation and economic growth dynamics.</li></ul><p>Wall Street’s response will likely depend on how aggressively these policies are implemented. While markets thrive on stability, Trump’s approach could introduce significant fluctuations.</p><h3>The National Debt: An Ongoing Challenge</h3><p>Reducing the national debt remains a pressing issue, but Mark is skeptical about achieving a balanced budget in the short term. Growth-driven strategies may help manage deficits, but cutting government spending poses immediate challenges for economic momentum.</p><h3>Staying the Course Amid Uncertainty</h3><p>With many moving parts, confidently predicting cumulative economic and market outcomes is impossible. However, investors should:</p><ul><li>Stick to long-term plans.</li><li>Maintain proper diversification.</li><li>Continue regular contributions to retirement plans.</li></ul><p>The focus should remain on steady progress toward financial goals rather than reacting to short-term disruptions.</p><p>For a deeper dive into these topics and actionable strategies, read Mark’s full article, <a href="https://soundmindinvesting.com/articles/trump-2-0-using-objective-investing-models-to-guide-us-through-anticipated-disruption"><i>“Trump 2.0: Using Objective Investing Models to Guide Us Through</i> <i>Anticipated Disruption</i></a>.” This article offers a clear framework for understanding the potential market impacts of Trump’s second term while encouraging a disciplined investment approach.</p><h3>On Today’s Program, Rob Answers Listener Questions:</h3><ul><li>My husband and I are researching long-term care options as we prepare to retire. We've considered long-term care insurance or an annuity with a long-term care rider, but we're having trouble deciding which is best for our situation. Do you have any recommendations?</li></ul><h3>Resources Mentioned:</h3><ul><li><a href="https://faithfi.com/give">Faithful Steward: FaithFi’s New Quarterly Publication</a></li><li><a href="https://soundmindinvesting.com/articles/trump-2-0-using-objective-investing-models-to-guide-us-through-anticipated-disruption">Trump 2.0: Using Objective Investing Models to Guide Us Through Anticipated Disruption by Mark Biller (Sound Mind Investing Article)</a></li><li><a href="https://soundmindinvesting.org/?%24web_only=true&amp;_branch_match_id=1406008510245626691&amp;utm_source=moneywise&amp;utm_medium=moneywise&amp;_branch_referrer=H4sIAAAAAAAAA8soKSkottLXL8ozMsnWSywo0MvJzMvWT9Uvzi%2FNS8nNzEvJzCtLLS7JzEu3rytKTUstKgIy45OK8suLU4tsnTOK8nNTAU0jnGBFAAAA">Sound Mind Investing</a></li><li><a href="https://www.faithfi.com/sparrows">Look At The Sparrows: A 21-Day Devotional on Financial Fear and Anxiety</a></li><li><a href="https://www.faithfi.com/rtg">Rich Toward God: A Study on the Parable of the Rich Fool</a></li><li><a href="https://www.faithfi.com/find">Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)</a></li><li><a href="https://www.faithfi.com/manage">FaithFi App</a></li></ul>
<p><p>Remember, you can call in to ask your questions most days at (800) 525-7000. Faith &amp; Finance is also available on the <a href="https://www.moodyradio.org/programs/faith-and-finance/">Moody Radio Network </a>and <a href="https://afr.net/podcasts/faith-finance/">American Family Radio</a>. Visit our website at <a href="https://www.faithfi.com/">FaithFi.com </a>where you can join the FaithFi Community <a href="https://www.faithfi.com/give">and give </a>as we expand our outreach.</p></p>

FaithFi

Faith & Finance is a daily radio ministry hosted by Rob West. The program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

Faith & Finance with Rob West

Major changes are likely coming for the U.S. economy. Will you be ready for them?

We have a new president who’s pledged to overhaul the economy. How will that affect investors and the markets? Mark Biller joins us today with a plan for managing “anticipated disruption.”

Mark Biller is Executive Editor and Senior Portfolio Manager at Sound Mind Investing, an underwriter of Faith & Finance.

Guidance For Economic Disruption with Mark Biller

FaithFi: Faith & Finance | Jan 21, 2025

Show Notes

Where Faith Meets Finance

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