Transcript of Video:
Woman: Welcome back to KCCI. And with the new president on the way, there’s always a lot of uncertainly around the impact it’ll have on your finances. So here to discuss that potential financial impact of President-elect Trump and what may happen to your money is financial adviser Kurt Pearson with Compass Financial. Thanks so much for being here.
Eric: Kurt, after the election results came in, overseas things, overnight, kind of went down quickly, but then it bounced back quickly yesterday. What happened?
Kurt: Well, the market was responding to the uncertainly that kind of had baked in a Hillary Clinton win, right? And so as the results started to come in, they started to react to the uncertainty of, “Oh, my gosh, we got this wrong. Now, what is going to happen? Now, how will this all impact?”
And so then the next morning, yesterday morning, pre-market, we began to see a little bit of stabilization. And then when the New York Stock Exchange actually opened, things were pretty calm, and then a rally ensued from there. I think part of that rally, actually, Eric, was because of the peaceful transition of power. We had Hillary’s concession speech, we had President Obama making some comments, everything was looking to come out fairly normal in terms of what we expect about the peaceful transition. I think that really calmed everything down a little bit.
Woman: And we’ve heard analysts saying that the Fed is likely to keep interest rates low in a Trump presidency. Why is that?
Kurt: Yeah, the markets starting to telegraph something a little bit different, because they’re beginning to say, “Hey, if some things begin happening, like they were analyzing yesterday, it can mean some growth in certain sectors of the economy, potentially, which would lead to the Fed being more interested in increasing interest rates.” So there’s a real level of uncertainty right now in the bond markets and with what will really happen with interest rates.
And so it’s very important for our viewers, for those that are interested to watch now about how President-elect Trump may begin to govern. Because how he campaigned, I don’t put a lot of stock in that. I put more interest in okay, how will the governance really take shape. And with what we’re hearing this morning about Vice President-elect Pence being very active in forming, you know, some of the cabinet and so forth, that could really help.
Eric: A period of transition, a period of learning of what, how they’re gonna handle things.
Eric: All right, thank you very much. Kurt Pearson, from the Compass Financial, his number’s on the screen, at 515-327-1020, if you have any further questions for him.