| | | Trump warns the market will crash if he loses. Investors just laugh
Former US President Donald Trump warned Friday that if he loses in November, there will be a market "crash like you wouldn't believe."
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New YorkCNN —
Former President Donald Trump is once again warning the stock market is doomed unless voters return him to the White House.
Trump is not just foretelling a market meltdown — something he, wrongly, forecast in 2020. The former president is predicting the mother of all market crashes if he isn’t victorious.
“If we lose, you’re gonna have a crash like you wouldn’t believe,” Trump said at a campaign rally on Friday. He went on to say a loss for him would spark “the largest stock market crash we’ve ever had.”
But there is no evidence to support that claim.
In fact, market veterans who CNN spoke to laughed off the former president’s warning of the biggest-ever market crash. They dismissed it as Trump just being Trump and argued the 2024 race for the White House has had little — if any — role in fueling the market boom.
“That’s the Trump bluster that I just don’t pay a lot of attention to,” said Brian Gardner, chief Washington policy strategist at Stifel. “There’s not going to be a huge selloff if Trump were to lose. Regardless of who wins, post-election you could see a rally — fueled by relief that it’s over.”
David Kelly, chief global strategist at JPMorgan Asset Management, said he doesn’t believe anybody who claims to be able to time the market — not even those who spend their entire careers trying to do just that.
“I would trust their opinion over that of any politician,” said Kelly. “I don’t believe they’re able to say what the market is going to do in the first week of November. And I don’t believe any politician can do that either.”
Asked about Trump’s market warning, Kelly said: “I think I heard that three years ago.”
Indeed, between August and October of 2020 alone, Trump sent six tweets saying the market would “crash” if Joe Biden were elected president. He made a similar warning in an October 2020 debate with Biden.
That forecast proved comically false.
The Dow spiked nearly 12% in November 2020, its best month since January 1987. And under Biden, the benchmark S&P 500 has climbed 34% to all-time highs.
“This is just an encore presentation of what he said last time,” said Art Hogan, chief market strategist at B. Riley Financial. “Oh, and by the way, we are significantly higher. We didn’t go through a massive selloff. We certainly didn’t go through a recession or depression.”
Sam Stovall, chief investment strategist at CFRA Research, downplayed the doomsaying from Trump as just a way for the GOP front-runner to get attention and perhaps motivate voters.
“Fear sells,” he said.
NOBODY DOES BULLSHIT AND FEAR BETTER THAN ME |
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