How Would a Trump Presidency Affect the Stock Market?

How Would a Trump Presidency
Affect the Stock Market?
By www.ProfitableInvestingTips.com

http://profitableinvestingtips.com/stock-investing-tips/how-would-a-trump-presidency-affect-the-stock-market
Hillary Clinton email issues
resurface, Trump moves up in the
polls and stock markets slide
across the globe.

How would a Trump presidency
affect the stock market?

Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese Candlestick Videos
Includes training for all 12 major candlestick signals.
http://www.candlestickforums.com
Before We Continue…

Donald Trump in the White House
would hurt stocks if the market is
to be believed.

Reuters reports that the dollar and
stocks are down on U.S. election
worries.

Global equity prices and the dollar
slid for the second straight day on
Wednesday, while safe-haven
assets such as gold rallied as
investors were rattled by signs the
U.S. presidential race was
tightening just days before the
vote.

Uncertainty about the outcome of
the election pushed U.S. Treasury
yields to their lowest in a week,
while crude oil extended losses
after U.S. government data
showed a much bigger-than-
expected build in inventories.

Investors were beginning to
rethink their long-held bets of a
Nov. 8 victory for Democratic
candidate Hillary Clinton amid
signs her Republican rival Donald
Trump could be closing the gap,
deepening the recent decline
across major stock markets.

As we have often repeated,
the market likes predictability and
Clinton is much more of a known
entity than Trump.

While some estimates have the
market up 11% if Clinton is
elected there appears to be a
good chance of a falling market if
her opponent makes it into the
White House.

What if Trump Wins?

The New York Times looks
at what happens to markets in
case of a Trump victory.

The conventional wisdom is that,
right off the bat, the stock market
would fall precipitously.

Simon Johnson, the
Massachusetts Institute of
Technology economist, posited
that Mr. Trump’s presidency would
“likely cause the stock market to
crash and plunge the world into
recession.”

He predicted that Mr. Trump’s
“anti-trade policies would cause a
sharp slowdown, much like the
British are experiencing” after their
vote to exit the European Union.

In explaining his prediction,
Professor Johnson wrote that
Europe’s economy is so fragile
that “Trump’s trade-led recession
would tip Europe back into full-
blown recession, which would
likely precipitate a serious banking
crisis.”

After that, he continued: “If this
risk were not contained – and the
probability of a European banking
debacle is already disconcertingly
high – there would be a further
negative spiral.

Either way, the effects on
emerging markets and all lower-
income countries would be
dramatic.”

Some may consider this opinion
excessive but the market does, in
fact, fall each time that Trump
advances in the polls.

The knee jerk reaction to Trump
winning would probably be a
broad scale selloff followed by
mini rallies in selected stocks.

For more ideas on what stocks to
buy or get out of in case of a
Clinton or Trump victory take a
look at our recent articles.

• What Would a Trump
Presidency Mean for Stocks?
• What Would a Clinton
Presidency Mean for Stocks?

An important fact for investors to
remember is that many things in
the world economy are not
immediately dependent on the
results of the U.S. election.

For example, the Chinese
economic slowdown and Europe
still flirting with recession are
problems in and of themselves

Although each could be affected
by economic disaster in the U.S.A.
Smart investors will do a little
homework before Election Day
and consider how intrinsic value of
each stock in their portfolio will
fare given either of the potential
victors.

How Would a Trump Presidency Affect the Stock Market?

Recomendados

Recomendados

Más contenido relacionado

Más de InvestingTips

Más de InvestingTips (20)

Último

Último (20)

How Would a Trump Presidency Affect the Stock Market?