Vote Trump — or you can kiss your precious bull market goodbye
That’s basically the warning President Donald Trump fired off over the weekend to his 61 million Twitter
followers: “If anyone but me takes over in 2020 … there will be a Market Crash the likes of which has not been seen before!”
Clearly, Trump is getting into full campaign mode already, with his run at another four years officially starting on Tuesday with a rally in Orlando, Fla.
This sort of scare tactic isn’t new with Trump, who tweeted back in February that the market would surely be in shambles under a Democratic president:
He also told Bloomberg News last year that there’d be big trouble if he were to be removed from office. “If I ever got impeached, I think the market would crash,” he said. “I think everybody would be very poor. Because without this thinking you would see numbers that you wouldn’t believe, in reverse.”
The Dow Jones Industrial Average
has done well under Trump, of course, though not quite as well as the blue-chip index fared under Barack Obama and Bill Clinton, as you can see from this Macrotrends chart:
Meanwhile, all eyes will be on the Federal Reserve this week, with meetings slated for Tuesday and Wednesday. Economists expect the central bank to try to back away gracefully from its stance that it was going to be patient for some time before changing interest rates.
Over the past few weeks, escalating trade tensions and a sense that the economy is on a slowing trend have led the market to price in over two cuts this year, according to futures trading as shown by the CME Group’s Fed Watch tool.