By CCN Markets: Rallying supporters to "Keep America Great," Donald Trump raised the stakes of the 2020 election in a tweet. The president said if he's not reelected, "there will be a market crash the likes of which has not been seen before!" If true,…
By CCN Markets: Rallying supporters to “Keep America Great,” Donald Trump raised the stakes of the 2020 election in a tweet. The president said if he’s not reelected, “there will be a market crash the likes of which has not been seen before!” If true, based on percentages, that means the stock market would lose 25% of its value after election day.
The worst stock market crash in history began on October 24, 1929. Historians call it Black Thursday. It was the beginning of a four-day earthquake in equities. The stock market crash ripped the bottom out of the economy and catalyzed the Great Depression.
The Dow Jones Industrial Average dropped 25% in value during that crash. Therefore Trump is predicting if a Democrat is elected in 2020, the Dow could lose even more than 25% of its value. In other words, at today’s benchmark around 26,000, Trump foresees the Dow potentially below 20,000 in this blue wave scenario.
Donald Trump will commence his 2020 reelection campaign this Tuesday. He’ll make his official announcement at a rally in Orlando, Fla.
Earlier in the day, he tweeted about the Orlando event:
As media and voter savvy as ever, the president seems to be testing out campaign themes on Twitter to see what resonates. He’s been pushing the message that a Democrat victory in 2020 would spell doom for the stock market and the economy.
Last week in an interview on Fox News with Laura Ingraham, Donald Trump claimed that the Dow would be 10,000 points higher today under his administration if the Federal Reserve hadn’t undertaken a round of rate hikes.
Though the message is obviously self-serving, what Donald Trump is claiming is actually somewhat in line with the historical post-election performance of the stock market and equities benchmarks like the Dow.
It’s never been nearly so dramatic as a 25% crash in stock prices.
But according to MarketWatch:
Several Democrat presidential hopefuls have promised to undo the tax bill passed by Donald Trump and the Republican Congressional leadership. They also tell voters they plan to make substantial fiscal reforms to address income inequality.
This article was edited by Gerelyn Terzo.
Last modified: January 11, 2020 12:58 AM UTC