Bitcoin surged to an all-time high this week as excitement over Donald Trump’s presidency reached fever-pitch. The price of Bitcoin shot up to around $110,000 on inauguration day, following the launch of the President’s own meme coin – a move which was widely read as a full-throated endorsement of the crypto sector. President Trump also took the opportunity to get in on the action himself, with the Trump-linked Liberty Financial picking up $47 million in Bitcoin on Monday to commemorate the 47th President’s return to office. With speculation over the creation of a US strategic Bitcoin reserve mounting, many analysts say the price of Bitcoin is poised to rise even higher.

Strategic Bitcoin reserve ‘looks likely’

President Trump’s pledge to create a US strategic Bitcoin reserve always looked like a longshot, but in light of the new administration’s dramatic and fast-moving initiatives, some observers think the blue-sky plan is now likely to become a reality. Although there was disappointment on the first day of the presidency that no new Bitcoin policies were announced, crypto enthusiasts had their hopes lifted by President Trump’s pardon of Silk Road founder Ross Ulbricht.

Ulbricht, who became a cause célèbre for many libertarian types, was jailed in 2013 for setting up and operating a dark web marketplace which facilitated the illegal sale of drugs, among other things. Operating under the alias ‘Dread Pirate Roberts’ Ulbricht was an early adopter of Bitcoin because of the anonymity it provided and its separation from any central bank. Though few complained of his prosecution, many felt his custodial sentence of two life sentences plus forty years was excessive, and issuing a full pardon on Tuesday, President Trump said he agreed.

Some investors see Trump’s pardoning of Ulbricht as a further sign the President is serious about following through on his campaign promises, particularly as they relate to the crypto space. Posting to X, Capital Management CEO Anthony Pompilano said: “If Ross Ulbricht got the pardon, we are definitely getting the Strategic Bitcoin Reserve. Trump will create history with the stroke of his pen.”

Forbes reported the pardon prompted Polymarket odds on the creation of a Bitcoin reserve within Trump’s first 100 days to shoot up, with many prominent names in the crypto space taking to social media to reaffirm their confidence that the reserve will become a reality.

It comes as some US states appear to be getting ahead of the administration to try and create their own strategic Bitcoin stockpiles, Bloomberg reports, with around 13 states looking to develop crypto reserves. As the outlet reported on Monday:

“Instead of waiting to see whether Donald Trump follows through on his endorsement of a national strategic Bitcoin stockpile, states are taking matters into their own hands…

“The Texas Strategic Bitcoin Reserve Bill, filed by Representative Giovanni Capriglione in December, would enable the Lone Star State to accept Bitcoin donations from Texans and US-based companies to build its reserve. States like Massachusetts, Wyoming and New Hampshire have recently followed suit. According to one lobbyist, at least 13 states in total are poised to propose similar legislation.”

However, other observers think the US strategic Bitcoin reserve is destined to remain a pipedream. Arthur Hayes, chief investment officer at Malestrom said he felt there were too many political and financial priorities vying for Trump’s attention which would preclude him from exercising the enormous political capital which would be required to actualise the policy. In comments to CoinDesk, he said:

“I don’t think Trump will get around to doing a bitcoin reserve…At the end of the day, I don’t know how borrowing money to buy Bitcoin helps on any of Trump’s platforms.

“You have so much borrowing capacity before you destroy the bond market. Are you going to borrow money to buy Bitcoin? Are you going to borrow money to give health care to the seniors who voted you in, or to build more bombs so that the defence lobby likes you?

“There’s a lot of different things you can borrow money to spend it on. I just don’t think that he’s going to spend it on bitcoin. Whilst as important as bitcoin bros think they are, there’s a lot of other interested parties that want that borrowed money to go into their pockets.”

Trump-mania fuels Bitcoin surge

Bitcoin continues to put in a strong performance, with many analysts predicting the cryptocurrency will continue to beat record after record this year. The surge is being led by bets that Donald Trump will award the once niche internet token a redoubtable place in the financial landscape as a universally respected and trusted commodity. Speaking to The Independent, Ed Hindi at Tyr Capital said:

“We believe Trump will turn some of his crypto rhetoric into action in his first 90 days in office and this should catapult prices…

“Creating a US bitcoin strategic reserve will be one of them. Other countries will be forced to follow suit and hence create a price action virtuous cycle.”

Speaking on Monday, the deVere Group CEO Nigel Green said he expects Bitcoin to potentially reach $150,000 by the end of the year, with its price boosted by a suite of pro-crypto policies pledged by the new Trump administration. He said:

“President Trump’s return to the White House could signal the Golden Age for crypto as it’s anticipated to usher in policies favourable to the sector.

“Trump’s administration has signalled intentions to provide clearer regulatory frameworks, potentially setting up a national Bitcoin reserve, and installing a crypto council of top-level advisors. All of these steps are likely to encourage further institutional investment in digital assets.

“Stubborn inflation and geopolitical uncertainties continue to affect traditional markets, leading investors to seek alternative assets. Bitcoin’s decentralised nature and limited supply position it as an attractive hedge against economic instability. The crypto’s resilience and potential for growth make it a compelling addition to diversified investment portfolios.”

In recent comments to Quartz, Aquinas Wealth Advisors CEO Christopher McMahon explained his Bitcoin price target of $130,000:

“I don’t think we’ve ever seen a more favourable environment for crypto. Bitcoin got up to $109,000 the other day. I think today it’s still $103,000. We actually see it just from this momentum, the president endorsing it, the new head of the SEC coming in as a kind of a crypto guy, we see the thing to be $130,000….

“It’s not on Main Street yet, but I think it’s coming. And for investors, I think it’s a tremendous opportunity. And I think everybody’s portfolio should have some exposure to crypto.

Is there an opportunity in Bitcoin right now?

Bitcoin’s recent surge to an all-time high of $109,225 on Inauguration Day illustrates how political developments are shaking up the crypto space. President Donald Trump’s enthusiasm for digital assets, exemplified by the launch of meme coins $TRUMP and $MELANIA, as well as the establishment of a crypto task force, has injected renewed enthusiasm among investors.

Hopes are now riding high Bitcoin could be propelled further by the establishment of a strategic Bitcoin reserve. BlackRock CEO Larry Fink has suggested if such a reserve is created the price of Bitcoin could reach as much as $700,000.

While the future of a U.S. strategic Bitcoin reserve remains uncertain, the confluence of political endorsement, institutional interest, and regulatory initiatives has many analysts saying that Bitcoin is on track for more growth. However, investors should be minded to maintain a balanced portfolio and consider the volatility inherent in the crypto markets. Always seek professional financial advice before making any investment decision.

The post Bitcoin breaks new record as strategic reserve speculation mounts first appeared on deVere Group.

On the eve of his inauguration, President Trump surprised the world by issuing his own cryptocurrency. The new token, named $Trump, quickly rocketed in price, peaking at $75 before entering a dramatic tailspin which saw its value fall by half. Most of the digital tokens are held by Trump-linked companies and total billions of USD in value. While the price of the cryptocurrency remains volatile, on Monday, $Trump was worth $42.9 billion to the President, dwarfing his real estate empire and social media venture in value to make him one of the world’s richest men.

While a disclaimer on the official $Trump coin website makes it clear that the digital token should not be viewed as an investment opportunity, it is likely many buyers will have been burned in an attempt to cash in on the viral craze. One trader reportedly lost $7.08 million attempting to capitalise on investor FOMO after the coin price crashed, leading experts to warn of the dangers associated with meme coins.

Finance chief issues warning over $Trump coin

A leading financial expert warned this week that investors should not think of so-called meme coins as business opportunities and said trading the digital currencies was more akin to gambling. Nigel Green, CEO of the deVere Group, said investors who are tempted into the volatile meme coin arena risked being burned. Commenting, he said:

“This is a revival of the meme coin trend we saw in 2021 and 2022, where many young, inexperienced investors got burned by extreme volatility. Without a doubt, investors will get burned by this frenzy too.

“Let’s be very clear: this is more gambling than investing. If you’re considering getting involved, you need to have a sound, diversified, long-term plan in place first.”

Mr Green, who heads up one of the world’s leading independent financial institutions, explained that the $Trump coin had no inherent value and that it was being traded based on speculation. This practice can result in a form of brinkmanship whereby traders try to jump in and cash out before the price tumbles – but with such a volatile commodity, the risks can be enormous, and the crash almost instantaneous. Mr Green continued:

“They’re mostly not buying because they think the coin has inherent value.  Understand the real risks to your money. This is not the same as investing in sound assets. Gambling is not the same as investing.

“If you do want the thrill or novelty of chasing big gains, ensure it’s part of a diversified strategy and not your main plan.”

Why did Trump create a meme coin?

Many commentators were bemused at the issuance of the $Trump coin, suggesting the President’s foray into the murky territory of meme coins stained his inauguration and jeopardised the reputation of established cryptocurrencies. However, others have celebrated the President’s embrace of the crypto space after four years of crackdowns under the Biden administration.

Nic Carter, a founding partner at Castle Island Ventures described the move as “Plumbing new depths of idiocy” and “absolutely preposterous” in comments to Politico. Also speaking to the outlet, a Washington crypto lobbyist who retains their anonymity said: “This is a horrible look for the industry already trying to make the case that we’re not a bunch of hucksters, scammers and fraudsters.”

Hong-Kong-based crypto analyst Justin D’Anethan said the $Trump coin raised a whole host of ethical questions, and told Reuters of his concerns over the new meme coin. Commenting, he said:

“While it’s tempting to dismiss this as just another Trump spectacle, the launch of the official Trump token opens up a Pandora’s box of ethical and regulatory questions.

“Should public figures, especially those with such political clout, wield this kind of sway in speculative markets? That’s a question regulators are unlikely to ignore.”

However, others in the crypto space have been less scathing about $Trump. While crypto venture capitalist Nick Tomaino was widely quoted in the media for his criticism of the meme coin, he complained on social media that his comments hadn’t been put in their proper context and that he felt the meme coin represented a positive development. In a series of posts on X, he said:

“Net positive. Vibe shift from the Biden anti-crypto era to Trump era is great. Trump owning 80 per cent and timing launch hours before inauguration is predatory and many will likely get hurt by it. Trump should be airdropping to the people rather than enriching himself or his team on this.

“There’s a way to spin it that way but unclear if that’s the direction it will go. At the moment it’s looking like an FTX coin – This isn’t as big a deal as some are saying and will blow over soon. Mute the people saying it’s a top signal and also mute the people saying it’s the biggest thing ever…

“No surprise the New York Times only used the negative part of my post on Trumpcoin. Trumpcoin is great. It signals the end of the Biden era of establishment control and the start of crypto innovation flourishing in the U.S. Just hope they put 80 per cent of the supply to good use.”

That being said, the overriding sentiment emerging from the crypto camp appears to be a sour one. President Trump, who a few years ago derided cryptocurrencies as ‘a scam’ before wholeheartedly embracing the sector has in his own meme coin transmitted a clumsy signal that he is all-in on crypto. As ever, former Trump aide Steve Bannon’s famous quote on understanding the President’s inimitable style of communication is instructive here; follow the signal, not the noise.

It is likely the President sees his foray into the crypto space as a way of stamping his seal of approval on crypto, which he has promised to make America a world leader in. But in appearing to profit from the venture while others lose, the 78-year-old President, whose understanding of meme coins might not be the most comprehensive, has done so in an inelegant and ill-advised way at best.

How much is $Trump worth?

On Tuesday, the Trump coin was trading between $33 and $38, significantly down on its Sunday peak of over $70, with a market cap of over $7 billion. But does it hold any inherent value? Finance chief Nigel Green says not:

“It is important to distinguish between speculative meme coins and legitimate digital assets that provide real value and utility.

“Trump’s presidency is expected to usher in an era of pro-crypto policies, and while this could pave the way for legitimate growth for established assets like Bitcoin, it also raises questions about the risks of speculative trading driven by social media hype.”

And as the FT puts it: “This token has no inherent value.” Yet $Trump boasts a multibillion-dollar market cap, despite being fundamentally worthless. That’s largely because of a combination of traders buying the token on a speculative basis, which drives the price up, alongside Trump supporters purchasing $Trump coin as a show of support.

In some ways, the $Trump coin saga resembles the public offering of the President’s social media platform, Truth Social, which garnered a multi-billion dollar valuation which in October shot past the price of Elon Musk’s X platform. That’s despite the view of the vast majority of analysts that there is very little value in the product, which is dwarfed by rivals like TikTok and Meta. However, the company attracted both those who wanted to express their support for Trump and traders betting on a speculative basis.

While Trump’s media company, DJT, does have something of value behind its overblown valuation, $Trump coin is a fiat currency, of which 80 per cent is held by a Trump-linked company and there is no known roadmap on when or how the remaining tokens will be introduced into circulation, making it an even more dubious proposition for anyone considering a serious investment.

Is there an opportunity in $Trump coin?

The launch of the $Trump cryptocurrency by President Donald Trump has cast a spotlight on the volatile and speculative nature of meme coins within the digital asset market. Initially introduced at approximately $6.50, $Trump experienced a meteoric rise, peaking at around $75, which propelled its market capitalization to over $14 billion. However, this surge was short-lived, as the coin’s value plummeted by nearly 50 per cent, stabilising around $37.85 with a market cap of approximately $7.56 billion.

This dramatic fluctuation illustrates the potentially grave risks associated with meme coins, which often lack intrinsic value and are heavily influenced by social media trends and speculative trading. The centralised ownership structure of $Trump, with 80 per cent of the tokens held by Trump-affiliated entities, has prompted concerns regarding market manipulation and ethical implications.

Financial experts have drawn parallels between the $Trump coin and previous speculative bubbles within the cryptocurrency sector, cautioning that such assets are more akin to gambling than traditional investing. The rapid ascent and subsequent decline of $Trump serve as a stark reminder of the volatility that characterises the meme coin market. This episode also raises questions about the potential for conflicts of interest, especially when public figures leverage their influence to promote financial instruments from which they stand to benefit directly.

The $Trump coin phenomenon highlights the dubious nature of meme coins and the broader implications for the cryptocurrency industry. Investors would be well advised not to look at meme coins like $Trump as prospective investment opportunities but rather should understand trading in these speculative meme coins as a form of gambling.

The key to a successful investment strategy is to build a diverse portfolio and adopt a long-term view. Time in the market, rather than timing the market – especially to chase memes or fads – is a far more reliable and far less risky approach. Always take financial advice before making any investment decision.

The post $Trump shows the danger of crypto meme coins first appeared on deVere Group.

Donald Trump’s announcement of a $100 billion artificial intelligence investment venture, with industry leaders such as SoftBank’s Masayoshi Son, OpenAI’s Sam Altman, and Oracle’s Larry Ellison at the helm, confirms two key truths: dismissing AI as yesterday’s story is a mistake, and every investor must ensure they have exposure to AI.

Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory and asset management organisations, comments: “Many analysts argue the AI rally is going to dampen this year, but this news reaffirms that we’re merely in a recalibration phase, not a revolution in market leadership. 

“AI is not a fleeting trend—it’s the foundation of the future. Investors who fail to recognise this risk missing out on one of the most transformative opportunities of our time.”

The venture, which aims to grow to $500 billion, focuses on advancing AI infrastructure, such as data centres and physical campuses, while accelerating real-world applications in sectors like healthcare and energy. 

Although companies like Microsoft and Nvidia are not officially backing the initiative, they are expected to play significant roles in the broader ecosystem of AI-driven growth. 

“Trump’s promise to fast-track these projects using emergency declarations and executive orders further highlights the urgency and scale of this economic shift,” notes Nigel Green.

In 2023 and 2024, the so-called “Magnificent Seven” tech giants—including Nvidia and Microsoft—drove entire indexes to record highs. 

These companies were responsible for a significant share of the S&P 500’s gains, making AI the defining story of the market. However, this dominance has led some to speculate that AI’s influence may be peaking.

deVere Group disagrees. “The recalibration seen in AI stocks is not a sign of decline—it’s a natural evolution after explosive growth. Leaders in the sector, such as Nvidia and Microsoft, remain at the cutting edge of innovation, driving advancements in computing, software, and AI infrastructure.

“Investors shouldn’t mistake short-term market adjustments for the end of AI’s dominance,” says the deVere CEO. 

“The trajectory for AI remains firmly upward as its applications continue to grow and expand across industries. This isn’t the time to lose confidence.”

Artificial intelligence is no longer confined to technology sectors; it is transforming healthcare, logistics, energy, and financial services. “It’s become a critical driver of productivity and efficiency, making it a foundational component of the global economy.”

deVere Group highlights that investors who move early in transformative economic shifts reap the most significant rewards. The compounding opportunities in AI are vast, and those who position themselves strategically now stand to benefit from the next wave of growth.

Green continues: “AI is not a speculative play, it’s a structural shift in how industries operate. From equities tied to leading AI companies to diversified technology funds, there are clear pathways for investors to capitalise on this revolution. Companies like Nvidia and Microsoft remain pivotal players, particularly as their contributions to AI ecosystems grow.”

Nigel Green concludes: “Analysts who dismiss AI as yesterday’s story are missing the bigger picture.

“Trump’s AI initiative is a wake-up call to the immense and ongoing potential of artificial intelligence.

“The time to build exposure to the defining economic shift of our era is today.”

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President Trump has pledged his new administration will issue sweeping tariffs to protect US industry. Well before his entry into politics proper, Trump has long complained that the US was being “ripped off” by other countries which he says benefit from selling to American consumers but block American exports from their own markets. The President’s view on the matter can be neatly summed up by a question he put to then-German Chancellor Angela Merkel during his first term; “How many Chevrolets do they drive in Munich?”

The former real estate mogul has said he is also seeking to wield tariffs as an economic weapon, both against geopolitical rivals and those who engage in unfair trade practices. President Trump has repeatedly hit out at China in particular for ‘dumping’ steel and devaluing its currency to ensure its exports can beat American-made goods. This trade imbalance has been blamed for job losses across the American economy, most acutely in the manufacturing sector, where 5.5 million jobs were lost between 2000 and 2017.

Tariffs are a key pillar of President Trump’s America First agenda. He and his team see import taxes as a way to blunt competition abroad while boosting jobs in the US, particularly in the automotive, chipmaking and steel industries. In his view, they also serve a strategic purpose, which includes expanding US semiconductor production and energy production, while denying the same to enemies, and perhaps even allies. With the world on the edge of a Fourth Industrial Revolution, access to semiconductors and large amounts of energy are more important than ever.

While the prospect of a trade war might not unnerve Trump voters, they did after all, vote for one, business leaders have raised their concerns over how new trade barriers could disrupt the global economy and reignite inflation in a big way. Experts fear that a new and aggressive American tariff regime could provoke retaliation from the likes of the EU and China, resulting in a slowdown in global trade and eventual stagflation.

Finance chief calls on Trump to think twice on tariffs

Trump has been urged to think again over his tariff plans by one financial leader, who branded the trade tax as a “blunt instrument.” Nigel Green, CEO of the deVere Group made the intervention ahead of the annual Davos meeting of business leaders and politicians, warning that a trade war “would hurt everyone.”

Mr Green, who heads up one of the world’s leading independent financial institutions acknowledged Trump’s concerns were legitimate, but said world leaders should take a collaborative approach to resolving trade disputes to protect businesses and consumers. Commenting, he said:

“Trump’s concerns about trade deficits and industrial competitiveness are understandable, but tariffs are not the answer.

“They’re a blunt instrument that punishes consumers and disrupts global markets. Davos is the place where smarter, more effective trade policies can be forged.

“Trump’s tariff strategy might resonate with domestic audiences, but the global economy doesn’t operate in a vacuum.

“These policies risk triggering a trade war that would hurt everyone—especially the middle and working classes which Trump is claiming to protect.”

Mr Green said the summit presented an opportunity for world leaders to hammer out new agreements to tackle trade imbalances and warned of the inflationary potential a new tariff schedule could bring:

“A 25 per cent tariff on Chinese imports would drive up the price of everyday items, from smartphones to clothing, directly impacting American households. Tariffs on industrial metals would increase production costs for manufacturers, slowing down production in critical sectors like automotive.

“Trump’s concerns about trade are understandable, but his proposed solutions in the form of tariffs are not. Davos 2025 must seize this moment to forge smarter trade policies that promote collaboration, innovation, and shared prosperity, rather than the divisive and damaging effects of tariffs.”

The comments came days after Trump was reportedly considering declaring a national emergency in order to activate new tariff barriers.

Trade war risks stagflation

An international trade war sparked by US tariffs could result in a toxic combination of flagging economic growth and spiralling inflation, central banks have warned. The Bank for International Settlements, which represents dozens of central banks including the European Central Bank and the Bank of England has this week raised the alarm over the impact of a looming trade war. In a January report, the BIS said:

“Global trade will probably face increased frictions and fragmentation, with implications for domestic output and prices. Although details of new trade policies are yet to be revealed, a tangible risk scenario is the broad-based imposition of trade tariffs by the United States with retaliatory measures by other countries. Estimates from a range of studies suggest that output will probably drop in the short run, while changes in consumer prices are likely to be uneven across economies.

“The inflationary effects will also heavily depend on the form of tariffs and the specific goods on which they are implemented. A key issue for central banks will be the risk of second-round effects after the initial price pass-through impact of tariffs, particularly given the potentially limited tolerance for further price increases among households.”

The International Monetary Fund has revised its world trade volume estimates downward for 2025 and 2026, as it anticipates uncertainty over trade. Its January outlook argued if countries fail to come to a consensus over trade, the spectre of stagflation looms large:

“An intensification of protectionist policies… in the form of a new wave of tariffs, could exacerbate trade tensions, lower investment, reduce market efficiency, distort trade flows, and again disrupt supply chains…

“On the upside, global economic activity may enjoy a bounce if incoming governments can renegotiate existing trade agreements and forge new deals. This could relieve uncertainty faster and be much less disruptive to growth and inflation. By boosting confidence, such cooperative outcomes could even support investment and medium-term growth prospects.”

How will other countries respond to American tariffs?  

Countries which face the prospect of being hit by new tariffs, which is virtually all of them, will have to meet the threat while courting their own various interests and interest groups. Early indications are that some countries are moving to find consensus while others are taking a belligerent approach.

EU carmakers have called on the bloc to strike a “grand bargain with the US President” to avoid a trade war. The automotive industry, which is particularly powerful in the key EU member state of Germany, wrote to European leaders this week asking them not to retaliate against any new tariffs. As The Financial Times reported:

“European carmakers have called on Brussels to strike a “grand bargain” with Donald Trump, asking lawmakers for an urgent analysis of what the incoming US president wants to avoid a bruising trade war.

“Acea, the European car industry body, on Thursday sent a letter to EU leaders urging them not to retaliate against Trump’s threatened tariffs…

“At a news conference, Ola Källenius, chief executive of Mercedes-Benz and new president of Acea, called for “a strong sense of urgency” for the EU to find room to negotiate with the incoming Trump administration.”

The intervention came after the EU indicated it could increase its purchases of US energy to help correct America’s trade deficit with the bloc, suggesting Europe’s business and political leaders could be willing to compromise if it means escaping Trump’s tariffs.

America’s biggest trade partner is its northern neighbour, Canada, where Trump’s threat of fresh tariffs has gone down like a cup of cold sick. After the US President lambasted the trading arrangements, the leader of the Canadian Conservative Party, who is likely to win the next election, said the only reason Canada has a trade surplus with the US is because it sells its energy far too cheaply – and threatened to explore refining and processing oil in Canada rather than sending it across the border.

The New York Times reports that the incumbent Liberal Party in Canada is preparing a raft of retaliatory measures which would be aimed at causing ‘maximum political pain.’ Sources close to the plans reportedly told the outlet that:

“Canadian officials are preparing a three-stage plan of retaliatory tariffs and other trade restrictions against the United States, which will be put into motion if President-elect Donald J. Trump makes good on his threat to impose a blanket 25 per cent tariff on all Canadian goods imported into the United States…

“The Canadian officials said their choice of goods was meant to be precisely targeted and aimed at political impact. They specifically want to focus on goods made in Republican or swing states, where the pain of tariffs, like pressure on jobs and the bottom lines of local businesses, would affect Trump allies.”

How the EU and Canada, as well as other crucial players like Mexico and China ultimately respond to the threat, and the reality of tariffs, remains to be seen. However, it is likely that allies and enemies alike will look for agreement before resorting to a trade war against the world’s biggest economy.

Trade tariffs risk significant disruption to the economy

The reintroduction of sweeping tariffs by President Trump, aimed at addressing trade imbalances and revitalising domestic industries, presents a multifaceted challenge to both the U.S. and global economies. Historically, tariffs have functioned as a double-edged sword. While intended to protect domestic industries, they often lead to increased costs for consumers and businesses. The Tax Foundation’s analysis shows that previous tariffs imposed during Trump’s first term amounted to a significant tax increase, affecting approximately $380 billion in trade.

The potential for a global trade war has raised fresh fears about stagflation—a scenario characterised by stagnant economic growth coupled with rising inflation. The International Monetary Fund has previously cautioned that escalating trade tensions could lower investment, disrupt supply chains, and ultimately hinder global economic growth. Moreover, the Bank for International Settlements has highlighted that increased trade frictions may lead to uneven price changes across economies, complicating the efforts of central banks to manage inflation effectively.

Critics caution that tariffs are a blunt instrument with unintended consequences. Higher import taxes are likely to raise the cost of goods for American consumers, impacting household budgets. Essential items like clothing, electronics, and vehicles could become more expensive, with inflationary pressures rippling across the economy.

For the US, the challenge lies in balancing short-term gains with long-term stability. Tariffs may provide immediate relief to struggling industries, but over-reliance on protectionism could erode the benefits of global trade and innovation. While tariffs may appeal to domestic constituencies, their broader economic impact must be carefully managed to avoid unintended harm to consumers and industries alike.

The post How Trump tariffs could impact the economy first appeared on deVere Group.

“With 25% tariffs on Mexico and Canada set for February 1, US businesses face a storm of higher costs, inflation is ready to roar back, and America’s biggest trading partners are being pushed to the edge. Is this a bold negotiation tactic or a reckless gamble? Either way, the consequences could be seismic,” warns Nigel Green.

He continues: “These tariffs are a tax on American businesses and families. They’ll drive up prices on everyday goods, shrink margins for companies, and trigger a chain reaction of higher costs across the economy.”

Mexico and Canada—responsible for 30% of all US imports—are bracing for impact. The US imported $475 billion worth of goods from Mexico and $418 billion from Canada last year, from cars to groceries. With tariffs slapped on, consumers will see sticker shock, and businesses will face squeezed budgets.

“Inflation is ready to make a comeback,” the deVere CEO says. 

“Higher import costs will hit wallets hard, while retaliation from trading partners could hurt American exports and jobs. It’s a lose-lose for the economy.”

Last year, the US exported $354 billion worth of goods to Canada and $322 billion to Mexico. If those countries respond with tariffs, industries like agriculture and manufacturing could feel the heat fast.

So, why the delay until February 1? 

Nigel Green is calling it a “clever bluff.” 

“Trump’s pause isn’t hesitation; it’s strategy,” he explains. 

“By dangling the threat of tariffs, he’s piling pressure on Mexico and Canada, and sending a warning shot to others like China and the EU. It’s a high-stakes gamble to force better trade terms.”

Adding fuel to the fire, Trump has ordered a probe into trade deficits and their national security risks, signalling more tariffs could be on the way. 

“This isn’t just about Mexico and Canada—it’s about rewriting the global trade playbook,” says the deVere chief.

With inflation still simmering and supply chains recovering from past shocks, these tariffs could be throwing gasoline on a fire. 

“If the plan is to boost American manufacturing, it’s a dangerous way to do it,” Nigel Green says. “Costs will spiral, allies will retaliate, and the global economy could hit turbulence.”

He concludes: “This isn’t business as usual. Trump’s tariffs risk creating chaos for global trade, and US businesses and investors need to be ready. This is a wake-up call to focus on long-term resilience as the short-term challenges pile up.

“As February 1 approaches, all eyes are on the administration. Will this gamble pay off, or are we on the brink of a trade war?”

The post Trump Tariffs: risky gamble or clever negotiation tactic? first appeared on deVere Group.

British expats to Spain could be hit hard by a proposed new 100 per cent tax on property purchases. The measure was outlined by the Spanish PM, Pedro Sanchez, in a speech on Monday as part of a series of proposals to tackle his country’s acute housing crisis. If imposed, the policy would mean all non-EU nationals without residency would effectively have to pay double that of a native Spaniard to buy a house.

The Spanish housing market is running red hot, with house prices up 8.1 per cent in Q3 2024 alone, as growing demand outstrips supply. That surge has been blamed in part on the practice of foreign buyers buying houses and apartments and then renting them to tourists using online marketplaces like Airbnb, resulting in many Spaniards being priced out of the market.

While the proposed new property tax may be a well-meaning attempt to secure Spanish housing stock from exploitative practices, it also threatens to hit some of the 300,000 Brits who have made Spain their home, and the many thousands who would like to but haven’t yet. Speaking to the FT, John Westwood, chairman of Blacktower, said if enacted the new tax would “severely impact UK expats” and “Could deter investment from UK nationals, negatively impact the Spanish economy,”

What is Spain’s new property tax?

Spain’s proposed 100 per cent tax on non-EU house buyers remains a proposal for now. Analysts say that even if Spain’s ruling Socialist Party moves forward with the plans, they could face a raft of both legal and political challenges.

Conservative politicians in Spain have already voiced their opposition to the tax plans and as the head of a minority government, Prime Minister Sánchez is not in a position to pass legislation without support from rival parties. However, some Left-wing politicians have reportedly complained the plans don’t go far enough, opening the doors to a potential deal which could see the proposed property tax become a reality.

That would be bad news for the more than 10,000 Brits who buy property in Spain each year and would see them faced with a 100 per cent tax against the value of the property they purchase. As of 2024 prices, it was possible to buy a beachfront apartment in the Costa del Sol for Around £100,000. But if the Spanish government imposed a 100 per cent levy, the cost to the buyer could double to around £200,000.

That would represent an approximately tenfold increase in tax for Brits wanting to buy in Spain, who pay between 8 per cent and 11.5 per cent on purchases under the existing tax regime, depending on whether the property is a new build or an older property.

Do I have to pay the new Spanish property tax?

While it is important to remember that Spain’s proposed 100 per cent tax on property is a long way from becoming a reality, it could be useful to think ahead to help ensure you remain tax efficient. In an article for The Telegraph, property journalist Liz Rowlinson suggested one way to get ahead of the tax could be to buy property sooner rather than later:

“One way to beat the tax hike would be to buy a property now. Spain’s transaction process can be relatively quick, and can take as little as two weeks if you have the correct paperwork.”

Rowlinson added Brits looking to buy in Spain should consider acquiring residency, which would exempt them from having to pay the tax which only applies to non-resident non-EU nationals:

“The most obvious loophole for British buyers is if they have an EU passport – or a spouse with one – which means they can purchase (or get residency) in the name of an EU citizen. Many British nationals with Irish ancestry have taken advantage of this since Brexit.

“Another option is to become resident in Spain before you buy, as the tax rise being suggested is on non-resident buyers.

“You don’t have to buy a property to get residency. You can rent a property in Spain to get a visa and thus a residency permit – such as the non-lucrative visa (NLV) or the digital nomad visa.”

If you are considering moving to Spain, our comprehensive guide to living in Spain covers everything you need to know, from attaining residency to accessing your pension. However, prospective expats should know a popular route to residency, the so-called Golden Visa scheme, expires in April of this year, so if you’re thinking of making the move you could benefit from acting fast.

Other experts have advised Brits that the best way around a tax hike on Spanish property might be to consider alternative countries to invest in. In comments to The Independent, Toby Leek, head of the National Association of Estate Agents said:

“Many Brits may take the news of heightened property taxes in Spain as a blow considering moving to such a location could well have been a lifelong ambition, especially with the convenient location and, of course, the improved weather it provides.

“Many Brits will likely be put off by this extreme hike in property taxes and will be looking to other countries such as Cyprus and Greece with lower property tax levels for their dream home move.”

Also speaking to the news outlet, Spanish lawyer Seila Sanches Lucas said if enacted the property tax could drive investors toward alternative destinations such as Dubai. Commenting, she said:

“The proposal by the Spanish Prime Minister will be concerning for those that have already chosen to retire in Spain and for those considering a retirement in the sun.

“It is just a proposal at this point in time and is not guaranteed to make it onto the Spanish statute books.

“Even if adopted, the legislative process in Spain is tortuously slow and it is perhaps a little early for UK nationals to worry about this proposal.

“If adopted, there are many other jurisdictions looking to attract wealthy retirees and investors. For example, Dubai has been called the new Marbella.”

If you’re thinking of buying property in Spain and believe you may be impacted by new tax rules, it could pay to take professional financial advice to help you navigate the complex and ever-changing rules which characterise the landscape.

deVere Spain offers various financial planning solutions in Spain to cater for your personal financial security. Whether you would like to plan for a safe and secure retirement or you would like to start a savings plan to pay for your children’s future education fees, deVere Spain has a broad range of bespoke solutions to help.

Will the Spanish property tax impact me?

Spain’s proposal to impose a 100 per cent tax on property purchases by non-EU citizens, including British buyers, has generated concern among potential investors and expatriates. This measure, aimed at addressing Spain’s housing affordability crisis, seeks to deter foreign investment that is perceived to inflate property prices, making homes less accessible to local residents.

For British nationals, who have traditionally been among the most active foreign buyers in Spain’s real estate market, this proposed tax could effectively double the cost of purchasing property. Currently, buyers in regions like Valencia pay a 10 per cent transfer tax on the property’s value; under the new proposal, this could escalate to 100 per cent, rendering the Spanish property market significantly less attractive to British buyers.

The potential impact on Spain’s real estate sector is substantial. Foreign buyers constitute approximately 15 per cent of property transactions in Spain, with British investors leading this demographic. A sudden withdrawal of this investment could lead to decreased demand, potentially affecting property values and the broader economy, particularly in regions heavily reliant on foreign property investments.

In response to these developments, British buyers are exploring alternative strategies. Some are expediting their purchase plans to secure properties before any new tax is enacted, while others are considering different markets with more favourable conditions, such as Cyprus and Greece. Additionally, the impending termination of Spain’s “Golden Visa” scheme on April 3, 2025, which has facilitated residency for property buyers, adds urgency for those seeking to establish residency before the window closes.

Spain’s proposed 100 per cent property tax on non-EU buyers aims to address housing affordability for its citizens, and in so doing introduces significant challenges for foreign investors, particularly from the UK. The potential economic repercussions, coupled with political opposition and the end of the Golden Visa program, create a more challenging environment for prospective buyers. Those considering property investments in Spain should closely monitor these developments and seek professional advice to navigate the evolving landscape.

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Donald Trump’s return to the White House as the 47th president is set to bring seismic shifts to financial markets as his agenda unfolds with dramatic consequences for growth, inflation, and investor strategy. 

Investors worldwide are being urged to prepare for heightened market volatility and a new era for the world’s largest economy.

Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory and asset management organisations, says: “With at least 100 executive orders reportedly ready for signing on his first day in office, the newly re-elected president will launch initiatives targeting trade tariffs, deregulation, and defence spending, which are likely to jolt markets and shape investor expectations over the coming months.

1. Protectionist tariffs

President Trump’s commitment to reshaping global trade is expected to kick off with tariffs on China, Canada, and Mexico. 

“Reports suggest incremental hikes of up to 25% on trade with these nations will commence immediately. Trump’s tariff plans, including broader duties of up to 20% on all imports, could significantly disrupt supply chains while stoking inflationary pressures,” comments Nigel Green.

“Investors in multinational corporations and export-heavy sectors should remain vigilant for shifts.”

He continues: “The inflationary impact of these tariffs could push consumer prices higher, potentially forcing the Federal Reserve to reconsider its current rate path and implement additional interest rate hikes.”

Combined with Trump’s ambitious spending plans—which are expected to further drive inflation—this could lead to tighter monetary policy in the months ahead. 

“Currency markets are already anticipating these dynamics, with the dollar likely to strengthen in the short term before facing depreciation as inflationary concerns deepen.”

2. Deregulation policies

The deVere CEO notes: “Deregulation is set to reignite the financial, energy and crypto sectors, with expectations that Trump will roll back many of the restrictions imposed during the Biden administration. 

“Banking stocks, which rallied post-election, could see further gains as Wall Street prepares for a more business-friendly environment.

“Financial services firms, fossil fuel producers and digital assets like Bitcoin stand to benefit, with potential ripple effects across equities and credit markets.”

3. Defense spending surge

“Under Trump, defence budgets are anticipated to surge, giving rise to new opportunities in aerospace, cybersecurity, and logistics sectors. This increased spending may strengthen defence stocks while potentially crowding out private investment in other sectors,” affirms Nigel Green.

4. Gold poised for gains

Trump’s sweeping policies are “likely to ignite inflation, further bolstering the appeal of safe-haven assets such as gold. China’s pivot toward gold and away from the dollar is set to exacerbate these trends, potentially leading to record highs in bullion prices.”

What this means for investors

The next six months will be marked by uncertainty, with the interplay of protectionist policies, deregulation, and inflationary pressures dictating market moves. 

Strategic diversification and a focus on inflation-resistant assets could be key to safeguarding portfolios and seizing opportunities in the new economic reality.

“With Trump’s economic vision underway, investors must prepare for a fast-changing landscape in the world’s largest economy. Seeking tailored advice now is critical to capitalising on the turbulence and emerging opportunities,” concludes the deVere CEO.

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Bitcoin reached a new all-time high on Monday, surpassing $110,000, ahead of Donald Trump's inauguration as the 47th President of the United States. 

Nigel Green, CEO and founder of deVere Group, one of the world’s largest financial advisory and asset management organisations, predicts that the flagship cryptocurrency will continue its meteoric rise, potentially reaching $150,000 by mid-2025.

This new milestone cements Bitcoin’s status as one of the most robust and sought-after assets in the current financial landscape. Nigel Green, renowned for his accurate Bitcoin forecasts, believes Trump’s return to the White House could mark the beginning of a Golden Age for cryptocurrencies.

“President Trump’s return to the White House could signal the Golden Age for crypto as it’s anticipated to usher in policies favourable to the sector,” he asserts.

According to Nigel Green, the incoming administration has hinted at plans that could dramatically reshape the crypto space. “Trump’s administration has signalled intentions to provide clearer regulatory frameworks, potentially setting up a national Bitcoin reserve, and installing a crypto council of top-level advisors. All of these steps are likely to encourage further institutional investment in digital assets,” he explains.

The past year has already witnessed a significant increase in institutional adoption of Bitcoin. Major financial institutions have begun integrating cryptocurrencies into their portfolios, driving confidence in digital assets as a legitimate and valuable addition to investment strategies. 

This trend, combined with a surge in retail investor interest, has contributed to Bitcoin’s remarkable performance and set the stage for further growth.

“Stubborn inflation and geopolitical uncertainties continue to affect traditional markets, leading investors to seek alternative assets. Bitcoin’s decentralised nature and limited supply position it as an attractive hedge against economic instability. The crypto’s resilience and potential for growth make it a compelling addition to diversified investment portfolios,” continues Nigel Green.

However, Green cautions that while the outlook for Bitcoin is undeniably bullish, volatility remains a defining characteristic of the market. 

“Investors are advised to approach the market with a long-term perspective and to diversify their holdings to mitigate risks associated with price fluctuations. Short-term corrections are expected as part of the market's natural cycle, providing opportunities for strategic investments,” he affirms.

The deVere CEO concludes: “The anticipated policies of the new administration, coupled with Bitcoin’s intrinsic qualities, are likely to solidify its status as a cornerstone of the modern investment landscape.”

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deVere Group’s Nigel Green’s comments come as the new administration’s focus will be on ramping up domestic energy production, particularly in Alaska, and rolling back regulations like the “electric vehicle mandate.”

The announcement, on Day 1 of Trump’s return to power, underscores his administration’s commitment to energy independence as he said in his speech “Drill baby, drill.”

By unlocking Alaska’s untapped resources and unleashing new opportunities for oil and gas production, the initiative aims to stabilize and reduce energy prices—a cornerstone of economic growth. 

Energy costs influence every facet of the economy, from consumer prices at the pump to the production costs of goods that rely on fossil fuels.

Nigel Green says: “The energy sector will undoubtedly be the most immediate beneficiary of this sweeping policy shift. 

“Companies involved in oil and gas exploration, extraction, and infrastructure stand to gain as regulatory barriers are dismantled and investment in domestic production soars. Shares of US energy giants and mid-cap firms are likely poised for significant upward momentum as the markets price in increased output and profitability.

“Global oil prices, already sensitive to geopolitical developments, could see sharp adjustments. 

“While increased US production may initially suppress prices, the broader implications—including shifts in OPEC strategies and trade balances—could lead to heightened volatility. This creates both opportunities and risks, particularly in commodities and energy-linked equities.”

“Beyond the energy sector, there will likely be positive effects on industries that rely on lower energy costs. Transportation, manufacturing, and agriculture are set to benefit from reduced operational expenses, potentially lifting their stock valuations. 

“Investors should also watch for renewed interest in infrastructure projects tied to energy distribution, from pipelines to export terminals.”

The urgency for investors to position themselves cannot be overstated. Trump’s policies represent a decisive shift from the status quo, and markets are likely to respond rapidly. 

Energy stocks are expected to see increased activity as US-based oil and gas companies, particularly those with significant interests in Alaska and other resource-rich regions, expand their operations. 

Commodities such as crude oil may experience pricing shifts as domestic production impacts global supply dynamics. Infrastructure investments, including projects related to pipelines and export facilities, are also set to surge in demand. 

Lower energy costs will likely catalyze growth across industries such as transportation, chemicals, and heavy manufacturing, creating additional opportunities for investors.

Trump’s bold move signals a return to prioritizing energy security and economic competitiveness. The rollback of regulations like the electric vehicle mandate highlights a shift in priorities—away from incentives for emerging technologies and toward bolstering traditional energy sectors. 

This recalibration will resonate across markets, creating new dynamics and recalibrating investment strategies.

In addition, the focus on Alaska’s untapped potential underscores the administration’s intent to maximize domestic resources. With technological advancements making extraction more efficient and cost-effective, the region could emerge as a cornerstone of US energy dominance.

“The declaration of a national energy emergency marks a turning point for markets and a rallying cry for investors. 

“With significant policy shifts on the horizon, the potential for growth is extraordinary—but so is the need for strategic action. Investors must act decisively, leveraging these developments to position themselves for what promises to be a transformative era,” affirms Nigel Green.

“As Trump’s administration sets the tone for a new era in energy policy, the potential for wealth creation is as vast as Alaska’s untapped resources,” he concludes.

The post Trump’s National Energy Emergency: A game-changer for investors and markets? first appeared on deVere Group.

Donald Trump’s launch of the $TRUMP meme coin is sending shockwaves through the cryptocurrency market, with the coin’s valuation skyrocketing by over 300% in less than 24 hours. 

As of Sunday morning, $TRUMP hit a market cap of $5.81 billion, marking the former president’s bold foray into digital assets and merchandise sales ahead of his upcoming inauguration.

Announced on Truth Social late Friday, $TRUMP was described as a celebration of Trump’s “WINNING” the presidential election. 

The coin, built on Solana’s blockchain platform, debuted with a limited supply of 200 million coins. According to its official website, the supply is set to expand to 1 billion over the next three years.

While $TRUMP’s meteoric rise has generated buzz, Nigel Green, CEO of deVere Group, urges caution. 

“This is a revival of the meme coin trend we saw in 2021 and 2022, where many young, inexperienced investors got burned by extreme volatility,” he explained. “Without doubt, investors will get burned by this frenzy too.”

The deVere CEO highlights the speculative nature of meme coins, warning that their valuations can fluctuate wildly. He explained that while big money can be made by some, this type of investment is inherently high-risk and unpredictable. 

He says: “Let’s be very clear: this is more gambling than investing. If you’re considering getting involved, you need to have a sound, diversified, long-term plan in place first.”

The $TRUMP coin’s rapid ascent underscores the risks associated with meme coins, which are driven less by fundamentals and more by social media-fueled hype. 

Nigel Green likens the phenomenon to gambling, explaining that many day traders are likely piling in with hopes of capitalising on Fear of Missing Out (FOMO). 

“They’re mostly not buying because they think the coin has inherent value,” he said. “They’re buying because they hope others will drive the price higher, allowing them to sell at a profit.”

This strategy comes with significant risks, and he emphasises that valuations for meme coins are likely to swing wildly in both directions. 

He adds: “Understand the real risks to your money. This is not the same as investing in sound assets. Gambling is not the same as investing.”

Beyond the excitement surrounding $TRUMP, the launch signals what could be a crypto-friendly stance from the incoming Trump administration. Trump’s move into the digital asset space aligns with speculation that his government will take a favorable approach to cryptocurrencies, potentially driving further adoption and innovation in the sector. 

The deVere CEO remains optimistic about the broader implications for the crypto market, explaining that a pro-crypto administration could accelerate the adoption of digital currencies and blockchain technology. 

He continues: “This will have long-term benefits for the economy. But it’s important to distinguish between speculative meme coins and legitimate digital assets that provide real value and utility.

“If you do want the thrill or novelty of chasing big gains, ensure it’s part of a diversified strategy and not your main plan.”

As the market reacts to this latest development, $TRUMP’s rapid rise underscores the broader debate over the role of cryptocurrencies in today’s financial landscape. 

“Trump’s presidency is expected to usher in an era of pro-crypto policies, and while this could pave the way for legitimate growth for established assets like Bitcoin, it also raises questions about the risks of speculative trading driven by social media hype,” he concludes.

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