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Donald Trump Claims the US Stock Market will Crash if He is Not Elected
Donald Trump’s recent comments at a campaign rally have left many in the investment community skeptical. The former president claimed that if he loses the 2024 presidential election, it would result in the “largest stock market crash we’ve ever had.” However, financial experts have dismissed these remarks as typical “Trump bluster” and see little evidence to support such claims.
Brian Gardner, chief Washington policy strategist at Stifel, described Trump’s warnings as “Trump bluster” and doesn’t foresee a significant selloff in the event of a Trump loss. Instead, he suggests that the post-election period could potentially see a market rally fueled by relief that the election is over.
David Kelly, chief global strategist at JPMorgan Asset Management, echoed these sentiments, stating that he doesn’t believe anyone can accurately predict the market’s behavior, especially during such a politically charged time.
Trump’s recent comments are reminiscent of similar warnings he made in 2020 about the market crashing if Joe Biden were to win the presidency. Those predictions, however, were proven false, as the Dow surged nearly 12% in November 2020, its best month since January 1987. Similarly, under Biden, the S&P 500 has climbed 34% to all-time highs.
Art Hogan, chief market strategist at B. Riley Financial, also highlighted the dissonance between Trump’s predictions and market realities. He remarked that the market has continued to climb despite Trump’s earlier warnings, with significant gains since then.
Overall, investors and market analysts remain skeptical about Trump’s dire predictions. The market has seen consistent growth in recent months, driven primarily by factors such as a strengthening economy, robust corporate profits, and reduced interest rates. The general sentiment is that market trends are influenced more by economic fundamentals rather than political predictions.
