Donald Trump’s entire campaign was based on populism – and he rode that wave right into the White House. A major part of that were his promises to save jobs and return America’s economic prowess to days gone by. And a lot of investors, supporters and citizens are banking on Trump’s promises to sustainably grow the economy.
The real question is, can he actually deliver on those promises?
Early signs are pointing to no. And it has nothing to do with Trump or any other president for that matter. A variety of factors from demographics to productivity rates are going to make the 4% growth rate that Trump has promised difficult to hit.
For investors, missing that promised level opens up a whole different set of allocation strategies, some of which investors may not be looking at.
Click here to find out how your portfolio could react to Trump winning.
Giving GDP a Shot in the Arm
Whatever your political party, it’s easy to see that the United States isn’t growing like it used to back in its heydays. At least not when it comes to GDP. As the economy has grown and matured, the rate at which the GDP has increased has slowed to a trickle. Marked by several recessions, the GDP has averaged just below 2.5% growth for the past two decades. That’s significantly down from the post-war expansion period of the 1950s and ‘60s.