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Trump hasn't taken office yet, but he's probably already had an impact on your finances


DC businesses are banking on Trump's inauguration being as profitable as Obama's

WATCH  |  The bulls are running now, but economists say the honeymoon could end as soon as the president-elect outlines specifics.

Donald Trump hasn't even taken office yet, but the president-elect has probably had an impact on your money.

In the weeks since the American presidential election, the U.S. stock market has rallied some 3 percent, global markets have seen some gains and your 401(k) is probably looking pretty good.

The Dow Jones surged past the 19,000 milestone for the first time in its 120-year history in a post-election rally.

Traders James Dresch, left, and Gregory Rowe work on the floor of the New York Stock Exchange, Monday, Nov. 14, 2016. Stocks are opening modestly higher on Wall Street, led by gains in banks as interest rates continue to rise. (AP Photo/Richard Drew)

That said, analysts say with every presidential race, there's a tightening in the markets in the run up to the election. Then there's a release, typically resulting in a bounce -- because if there's one thing markets don't like its uncertainty.

We don't know what we don't know.
Larry Shover

Electing a new president erases some uncertainty, but analysts still predict market swings in the coming months, adding that these moves aren't necessarily tied to Trump and his policies.

"That's just a function of the business cycle that we're in," Larry Shover, chief investment officer of Solutions Funds Group, told Circa. "We don't know what we don't know. We don't know what the future holds."

President-elect Donald Trump, left, and Vice President-elect Mike Pence acknowledge the crowd during the first stop of his post-election tour, Thursday, Dec. 1, 2016, in Cincinnati. (AP Photo/John Minchillo)

With Trump's promises of corporate tax cuts, deregulation of trade and deal-making, it may have helped give markets an extra bump. But, you might want to hold off on splurging on that new wardrobe or MacBook.

"It's hard to know how President-elect Trump will be in 54 days or 53 days when he is President Trump," Joann Weiner, director of the department of economics at George Washington University, told Circa.

"I think the biggest worry for anyone getting out of college is, 'Will these policies tip the economy into a recession?'"

Probably not, but still, what does that mean for your little nest egg?

Shoppers carry their purchases as they leave Target on Black Friday, Nov. 25, 2016, in Wilmington, Mass. Stores open their doors Friday for what is still one of the busiest days of the year, even as the start of the holiday season edges ever earlier. (AP Photo/Elise Amendola)

Well, economists predict a rise in interest rates, which isn't always awesome for buying power.

While the economy is improving and wages have inched up more than 2 percent in the last year, the recovery has been sluggish.

"Suppose you were thinking about taking out a loan...for buying your car," Weiner explained. "Well, when interest rates go up, you're going to have to pay more for that loan. So your fixed costs go up."

And, for example, mortgage rates are still low, but they've been moving upward since the election. So, what's a young person to do?

Diversify and Save

One of two things. "Diversify your assets," Shover recommended.

Or, per Weiner, keep up your savings.

"If you're only in your 20s, you've got a lot of years to ride it out. So, don't even worry. Just keep on putting your money away in your retirement account."

Do you think Trump will impact your money?

60 Second Circa for Monday, Dec. 5, 2016

WATCH  | For the news you need, check out our 60 Second Circa.

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