If I am not re-elected as US President, stock markets will crash: Donald Trump
President Donald Trump is credited with the super-surge in the stock markets since the deadly crash in March 2020.
In fact, the S&P 500, the benchmark for US stocks, is coasting at record highs and has gained 54 per cent from the low in March. It is up 4.5 per cent for the year.
This has happened because Trump, in a visionary stance, harangued the Federal Reserve to cut interest rates to zero and bring in monetary easing policies.
Would be sooo great if the Fed would further lower interest rates and quantitative ease. The Dollar is very strong against other currencies and there is almost no inflation. This is the time to do it. Exports would zoom!
— Donald J. Trump (@realDonaldTrump) December 17, 2019
He also called the Babus of the Fed an “enemy” akin to the Chinese Vermin and threatened them with dire consequences if they did not comply.
….My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?
— Donald J. Trump (@realDonaldTrump) August 23, 2019
This had the desired effect and the Babus had no option but to meekly comply with the exigencies of the situation.
Thereafter, Trump has rightly claimed credit for the successes of the stock market.
….My Administration and I built the greatest economy in history, of any country, turned it off, saved millions of lives, and now am building an even greater economy than it was before. Jobs are flowing, NASDAQ is already at a record high, the rest to follow. Sit back & watch!
— Donald J. Trump (@realDonaldTrump) August 18, 2020
NEW RECORD FOR NASDAQ!
— Donald J. Trump (@realDonaldTrump) August 17, 2020
He has also made it amply clear that if he is not re-elected as President, there will be draconian consequences for the stock market and it will crash like a ton of bricks.
RECORD HIGH NASDAQ! It would all come crashing down, including your Jobs, Stocks, and 401k’s, if Sleepy Joe ever became President. China and others would own us!!!
— Donald J. Trump (@realDonaldTrump) August 3, 2020
Strong Stock Market Numbers. You want to see them dive? Vote for the Radical Left with their BIG Tax Hikes!
— Donald J. Trump (@realDonaldTrump) July 21, 2020
Apparently, Joe Biden and Kamala Harris, the contenders for the post of President and Vice-President respectively, have a socialist/ communist outlook and intend to levy heavy taxes ($4 Trillion) on the populace, which will obviously lead to a flight of capital from the USA, and a collapse of the stock markets.
REMINDER: Joe Biden: “The first thing I would do” is raise taxes.
Joe Biden and Kamala Harris are campaigning on a $4 TRILLION tax hike, the largest ever.
Biden's tax agenda would hurt 82% of all Americans. pic.twitter.com/Z1UKXGGJ1S
— Steve Guest (@SteveGuest) August 19, 2020
Also, Biden is endorsed by the Chinese Vermin, which makes the situation intolerable for everyone.
Communist China made clear they want @JoeBiden for President and the DC media is near-silent about it.
— Richard Grenell (@RichardGrenell) August 20, 2020
Stock market will crash after elections: Robert Kiyosaki
Robert Kiyosaki is regarded by intellectuals as an authority on the principles of investing.
He is also the author of a best-selling book titled “Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!” which apparently reveals secrets about the investing techniques of the rich and famous.
Kiyosaki has sent the chilling warning that the elections season may herald a crash which may be “bigger than March 2020“.
Historically the stock market will stay up until after the election. Will history repeat? If this stock market crashes it will be bigger than March 2020. BUFFET out of banks for a reason & into gold. Silver still most affordable and useful safe investment. Take care. Be smart.
— therealkiyosaki (@theRealKiyosaki) August 20, 2020
He has also pointed out that this is the precise reason why Warren Buffett has bailed out of stocks and is hoarding Gold.
WHY BUFFET is OUT OF BANKS . Banks bankrupt. MAJOR BANKING CRISIS COMING FAST. Fed & Treasury to take over banking system? Fed and Treasury “helicopter fake money” direct to people to avoid mass rioting? Not a time to “Think about it.” How much gold, silver, Bitcoin do you have?
— therealkiyosaki (@theRealKiyosaki) August 21, 2020
The risk/reward in equities is now heavily skewed to the downside: Jeffrey Talpins, Element Capital
It is also elementary that after the unstoppable rally, the markets are bound to take a breather.
“We believe that the rally has now extended well beyond levels justified by the state of the economy, and with little regard for the myriad of risk factors looming on the horizon,” Talpins rightly pointed out.
“This environment presents what may be the largest set of tail risks we’ve seen over the fund’s 15 years, and the odds of realising one or more of these events has multiplied,” he added.
“The risk/reward in equities is now heavily skewed to the downside,” he stated emphatically.
Conclusion
The consensus amongst the experts is that the stock markets are now headed for a correction.
HDFC Securities has issued a strategy report in which it has listed 12 warning signs which show that the global markets are topping out.
“The idea behind this note is to caution against building fearless longs and advise taking some profit off the table. While the liquidity spigot may not be turned off immediately and this may result in the party in individual stocks continuing, the risk reward on broader markets does not seem too favourable,” it is plainly stated.
Similarly, Sanjiv Bhasin (who has so far been reading the markets correctly) has warned that a savage correction is expected which will “differentiate the men from the boys“.
Sushil Kedia, a noted expert, has expressed similar sentiments.
Chart Check | Expect a 400-600 point correction on #Nifty, says @sushilkedia, founder, @kedianomics in conversation with @_anujsinghal & @_soniashenoy. Adds that we may see the Nifty #Bank lead the whole market again#TrackingTheTechnicals #COVID19 pic.twitter.com/7Lyasap9t5
— CNBC-TV18 (@CNBCTV18News) August 11, 2020
In these circumstances, it is better if we also keep our powder dry and wait for better investing opportunities rather than rushing in now!
