Why Trump’s Policies Could Fuel Inflation

Key Takeaways

• Tariffs under a Trump administration could raise inflation, depending on how they’re applied and which sectors they target.
• Deportation policies that reduce the labor force could push wages higher, adding more inflation pressure.
• Investing in a “Trump world” means focusing on sectors tied to an America First agenda, such as energy, defense, AI and semiconductors.
• Investors should be ready for sudden policy changes and aim for positions that can withstand shifting rules.
• A constant sense of political showmanship may create more market volatility, so managing risk becomes more important.
• After strong gains in recent years, equity markets may have limited broad upside and could become more of a stock picker’s market.