This November, millions of Americans voted to bring Donald Trump back to the White House. Many of them made their decision based on the belief that he would strengthen the economy. However, many economists and financial experts have been sounding the alarm that Trump’s policies could do more harm than good — potentially a lot more harm.
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Anthony Scaramucci occupies a unique position among these critics. He worked in the Trump 1.0 administration as White House communications director for such a brief tenure that the term “a Scarmucci” entered the cultural lexicon as shorthand for “a short period of time.” He spent the 2024 election season as one of Trump’s fiercest foes, largely due to the damage he believes Trump’s policies could inflict on the economy.
Scaramucci has gone on record predicting the stock market could crash during Trump’s second term. He argued that plans for mass deportations and tariffs could spike the prices of consumer goods. On an MSNBC panel before the election, he warned that Trump’s policies could “explode the deficit” and that stripping the Federal Reserve of its independence could lead to “a massacre of the local currency.”
That sounds dire. But wringing your hands isn’t as helpful as planning ahead. Best-case scenario, Scaramucci is wrong, and you’ve adopted some positive financial habits. If he’s right — at least you’ll be ready.
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You know what they say about eggs and baskets. Just as you don’t want to put all your eggs in one basket, no matter how big and beautiful it may seem, you don’t want to put all your resources in a single investment. To mitigate risk, especially when it comes to your retirement savings, it’s wise to spread out your savings across individual stocks, stock mutual funds, or exchange-traded funds (ETFs).
Consider getting even more creative with your investments. For instance, precious metals can provide protection against market volatility. Other options include real estate, bonds, cash value life insurance, annuities, and even alternative holdings, such as oil and gas.
If you sense bad times on the financial horizon, having a diversified portfolio gives you the freedom to adjust. You can allocate funds to investments that seem more secure, even if only temporarily. That way, even if the worst happens, you’ll still have a safety net.
