Real estate
Galloway pointed out that one reason the projected surge in deficits under Trump is “great” for him and Anderson Cooper is that they “own homes.” He noted that deficit spending can inflate asset values, including real estate, while warning that the younger generation may face inflation and higher mortgage rates.
It seems that excessive government spending can indeed contribute to rising prices. Research out of MIT shows that federal spending played a significant role in the inflation spike Americans experienced in 2022.
Fortunately, real estate has historically been an effective hedge against inflation. When inflation rises, property values often increase as well, reflecting the higher cost of materials labor, and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that can adjust with inflation. This combination makes real estate an attractive option for preserving and growing wealth during periods of escalating price levels.
While Galloway cautioned about the potential for high mortgage rates in the future, the U.S. Federal Reserve has begun cutting interest rates, providing opportunities for potential buyers, while experts recommend shopping around and obtaining quotes from several lenders to secure the best mortgage rate possible.
To make this process easier, tools like the Mortgage Research Center (MRC) can help you quickly compare rates and estimated monthly payments from multiple vetted lenders. By entering basic details — such as your zip code, property type, price range and annual income — you can view mortgage offers tailored to your needs and shop with confidence.
Of course, these days, you don’t need to buy a house to start investing in real estate. Crowdfunding platforms like Arrived have made it easier for average Americans to invest in rental properties without the need for a hefty down payment or the burden of property management.
With Arrived, you can invest in shares of rental homes without worrying about mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.
Equities
As Galloway noted, older generations tend to hold stocks — another asset class that can benefit from deficit spending. When the government spends more than it earns, additional funds are injected into the economy, potentially boosting corporate profits and investor confidence in the short term.
Stocks can also serve as a hedge against inflation, which deficit spending can exacerbate. As inflation drives up costs, companies capable of passing these expenses onto consumers through higher prices can maintain or even grow their profit margins. This ability to adapt could lead to stronger earnings and potentially higher stock prices.
You don’t have to be among the wealthy, like Galloway or Cooper, to invest in stocks. Trading apps like Public allow everyday investors to capitalize on the stock market by investing in fractional shares for as little as $5. You can easily pack your portfolio with your favorite companies, with zero commissions. Public also offers a high-yield cash account with a competitive 4.35% APY, letting your idle funds work for you.
To make informed decisions, investors can use research tools like Moby, which provide expert analysis and market insights, helping users optimize their portfolios.
The team of former hedge fund analysts and experts at Moby sift through financial news and data to provide superior stock and ETF research to keep you up-to-date on what’s moving the markets.
In four years, across almost 400 stock picks, Moby's recommendations have beaten the S&P 500 by almost 12%, on average.
Gold
Galloway isn’t alone in warning about the inflationary risks of a second Trump presidency. Former U.S. Treasury Secretary Larry Summers echoed similar concerns to CNN, cautioning that if Trump implements his economic plans, “there will be an inflation shock significantly greater than the one the country suffered in 2021.”
A traditional hedge against inflation is gold. Unlike fiat currencies, the precious metal can’t be printed in unlimited quantities by central banks. And because its value isn’t tied to any one currency or economy, gold could provide protection during periods of economic uncertainty. This unique characteristic has earned it the reputation of being a “safe haven” asset.
In 2024, gold has lived up to its reputation, soaring by over 25% and surpassing $2,600 per ounce.
One way to invest in gold that also provides significant tax advantages is with a gold IRA. Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those seeking to ensure their retirement funds are well-shielded against economic uncertainties.
One of the country’s most trusted precious metals companies – with an A+ rating from the Better Business Bureau – American Hartford Gold has helped thousands of clients open and manage a gold IRA to help protect their retirement.
When you sign up with American Hartford Gold, you’ll be eligible for an offer to receive up to $15,000 in free silver, along with the assurance of the best pricing through their price match guarantee.
