America on a roll? Trump hails 4.3% GDP surge in ‘great’ US economy, promising bigger gains ahead. Build riches in 2026
Yahoo Finance·2026-01-05 20:03

Economic Growth and Stock Market Performance - The U.S. stock market has been a significant driver of wealth creation, with President Trump highlighting its strength and the positive impact on 401(k) accounts [1] - The Federal Reserve cut its benchmark interest rate three times in 2025, with further reductions expected in 2026, which may stimulate consumer spending and business investment [2] - U.S. GDP grew at an annual rate of 4.3% in Q3 2025, surpassing economists' expectations of a 3.2% increase, marking the fastest growth since Q3 2023 [4] Economic Policies and Trade - Economists predict that easing policy uncertainty, fiscal support, and accommodating monetary policy will strengthen the economy in 2026 [3] - Tariffs are seen as a factor contributing to economic performance by discouraging imports and positively affecting trade flows, with net exports adding 1.59 percentage points to GDP growth in Q3 [3] Investment Strategies - The S&P 500 index returned 16% in 2025 and has gained approximately 83% over the past five years, suggesting a strong long-term growth potential [6] - Warren Buffett advocates for investing in the S&P 500 index fund for broad exposure to large companies, providing diversification without the need for active trading [7] - Real estate is highlighted as a productive asset class, with properties providing consistent rental income and serving as a hedge against inflation [11][12] Alternative Investment Opportunities - Crowdfunding platforms like Arrived allow investors to participate in real estate with minimal capital, starting at $100, without the responsibilities of property management [13] - Fundrise offers a venture capital product that enables retail investors to invest in private tech companies, starting at just $10, thus democratizing access to private equity [18][19] Financial Advisory Services - Vanguard provides a hybrid advisory system that combines professional advice with automated portfolio management, tailored to individual financial goals [20][21] - The service aims to ensure that investments align with personal objectives while maintaining an unbiased approach, as advisors do not earn commissions [22]

America on a roll? Trump hails 4.3% GDP surge in ‘great’ US economy, promising bigger gains ahead. Build riches in 2026 - Reportify