Legal & Financial Markets: Understanding the Connection (Post-Trump Era)

Welcome back to Legal 4 Normal People! Today, let’s talk about how the law and financial markets are linked, especially after Trump’s election. This might sound complicated, but let’s break it down simply.

Financial markets—like the stock market or bond market—are where people buy and sell investments. These markets can swing up or down based on events, policies, and legal changes. When Trump was elected, we saw this connection in action. He promised big tax cuts, less regulation, and a focus on America-first policies. This made businesses and investors excited because it meant more profits for them. As a result, the stock market shot up right after his election.

But here’s where the law comes in: changing regulations affects how businesses operate. For instance, Trump rolled back many regulations that limited what banks and big companies could do. This made it easier for them to take risks, which helped profits but also made some experts worry about another financial crisis.

At the same time, legal changes, like Trump’s tax cuts, put more money in corporations' pockets. This led to stock buybacks (companies buying their own stocks to boost prices) rather than investing in growth. The stock market looked great, but many regular people didn't feel the benefits.

So, why does this matter to you? Understanding how legal changes impact the markets can help you make smarter financial decisions—like where to invest your money or when to be cautious. The law isn't just for lawyers; it affects all of us, especially our wallets!

Owen Lawton LFNP