'Bad For Business'—Investor Questions The Impact Of President's Executive Orders On The Market Due To 'Intensified Interference'

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A recent Reddit post on r/stocks has caught the attention of many investors. The post, which got thousands of upvotes and comments, talks about concerns over President Donald Trump's new executive orders. The main worry is that these orders give the White House more control over financial agencies like the Securities and Exchange Commission and the Federal Trade Commission.

A New Level of Government Control

Trump's executive order now forces these agencies to report to the White House, which means they are no longer fully independent. The SEC and FTC are responsible for making sure businesses follow the rules, but now, their decisions could be influenced by politics.

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For investors, this shift raises serious concerns about market fairness and corporate accountability. Regulatory agencies play a key role in investigating corporate misconduct and ensuring market stability. If these agencies lose their independence, it could result in weaker enforcement, corporate favoritism, and market volatility.

Play It Safe or Stay the Course?

The investor posed a simple question on Reddit: “Does anyone else feel uneasy about investing given all of the U.S. President’s Executive Orders?” They continued, “The most recent EOs indicate intensified interference in the activities of the SEC and the FTC. This would most likely severely impact their operations. The other EO undermining the judiciary undermines the Rule of Law, which is of course also bad for business. I'm feeling really worried and am considering pulling out some of my investments and holding.”

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Reddit users and investors have different opinions about what to do next. Some say it's smart to hold more cash in case the market drops. Others think it's best to keep investing slowly over time while having extra cash ready if stocks suddenly get cheaper.

One user suggested keeping at least 20% of their money in cash to be safe. Another pointed out that holding too much cash might not be a good idea because inflation could lower its value over time.

Global Diversification and Safe Havens

Many investors are looking beyond U.S. markets, considering European defense stocks, cybersecurity firms, and international mutual funds. Some are even exploring multi-currency accounts as concerns grow over the long-term stability of the U.S. dollar.

The discussion also touched on the impact of new tariffs on chips and cars, which some believe could contribute to inflation and supply chain disruptions. If the Federal Reserve maintains high interest rates in response, it could further shake investor confidence.

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A Broader Power Grab?

This isn't the only executive order raising alarms. Trump has also fired 17 independent watchdogs, attempted to eliminate birthright citizenship, and issued over 1,500 pardons related to the Jan. 6 Capitol riots. Some legal experts believe these moves are designed to test the limits of presidential power and could even be aimed at getting Supreme Court approval for expanding executive authority.

Trump's administration has also created the Department of Government Efficiency, which has been making deep cuts across federal agencies, including the United States Agency for International Development.

What's Next for Investors?

Stay invested and ride the wave, or move to safer assets as uncertainty looms? One thing is clear—no one really knows what's coming next. While some believe the stock market remains resilient, others argue that weakening regulatory institutions could make long-term investing riskier. If companies can operate with less oversight, short-term gains could be followed by long-term instability. Meanwhile, Congress has been largely silent, with Republicans offering little pushback to Trump's aggressive executive actions.

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