If the decisions related to tariffs are balanced and implemented gradually, the markets, particularly the bond market, will respond positively.
If the new immigration policies revoke some of former President Joe Biden’s policies, the markets will respond positively. On the other hand, if millions of immigrants are deported at once, it will lead to a labor shortage, resulting in wage increases, which may affect inflation.
The optimal scenario for tariffs and immigration policies under the new administration would involve a gradual increase in tariffs, with discussions on trade policies. As for immigration, it is preferable not to deport millions of immigrants. This scenario would have a positive impact on inflation, allowing it to continue its desired trajectory.
At The Family Office, we recommend that investors focus on highly-rated private debt, private equity, and other assets that can protect the portfolio from the impact of inflation.
Watch the full interview above.