Connect with us

Political Dig

Markets Panic: Fear Of Trump Causes Historic Drop In The Stock Market


Markets Panic: Fear Of Trump Causes Historic Drop In The Stock Market

While Donald Trump chances of winning the presidential elections is still a long shot, recent polls show Hillary Clinton’s numbers dropping, and the markets are starting to panic. The S&P 500 was down Friday for the ninth straight day, something that hasn’t happened since 1980, according to The Huffington Post.

“The U.S. elections are the elephant in the room for markets,” Julius Baer’s head of research Christian Gatticker told Bloomberg. Trump is consistently trailing Clinton in key swing states, but As Trump’s chances of winning have risen and Clinton’s chances have fallen, the stock market has reacted with the most prolonged sell-off since the financial crisis:


And it’s not just falling stocks. Investors moved more money into cash-like money market funds last week than any week in the last three years.

Economy experts agree that Trump’s policies of building a wall along the border with America’s third biggest trading partner, deporting some 11 million undocumented immigrants, and starting a trade war with Mexico and China that would destroy 4 million U.S. jobs are all deeply harmful to the economy.

Citigroup thinks a Trump win could cause a global depression. Moody’s says Trump’s policies would throw the U.S. economy into the longest recession since the Great Depression. By a different measure, Trump in the White House would cause the American economy to shrink by $1 trillion over five years, according to British research firm Oxford Economics.

As The Huffington Post reports: “concern about a Trump win is already affecting the fundraising plans of some startups. Companies are raising new capital earlier than they had planned in order to have a cash cushion in case Trump wins.”

But markets concerns won’t evaporate if Clinton wins. Trump’s base is so angry and resentful of Clinton that he predicts the possibility of significant economic harm even if Clinton wins because Republicans may prevent any Democratic-backed legislation or appointments from passing.

The solution? Vote all Republicans out of congress.

H/T: The Huffington Post

Click to comment

More in NEWS



To Top