Investment strategies for the next four years

[IphengeniaBlumgarten]

12. Watch out for inflation

I suspect Trump's activities will contribute bigly to inflation: big infrastructure spending plus big tax cut will result in ballooning federal deficit and much inflation.

Yes, the market may tank, and having some percentage of your assets in cash at this time would protect you from having to sell stocks near their lows and also allow you to buy at a discount at such a time.

But having all your assets in cash is not good, because inflation may seriously erode the buying power of that cash.

If you own stocks in well-managed companies, they may do OK even in a bad economy, and the value of stock will typically keep pace with inflation. If you have selected dividend-paying stocks, you will also be getting some income, a good bit more than you would with most bonds in the present environment.

So, a mix of assets is probably the safest course.