trump-melania

Stock Market Crash November 2016 update: Presidential Election fearing Stock Markets

In October the S&P 500 lost 1.9%, the Dow Jones lost 0.9% and the Nasdaq lost 2.2%. Indices performed bad because of declining oil prices and the increasing chance of a rate hike by the FED. As predicted the FED will come after the elections with a rate hike in December or January. Yesterday the FED was even more positive than last month about the economy, which made the chance of a December rate hike rise to 80%.

8 November the presidential elections will be held in the USA

Since Donald Trump is making a comeback in the election polls, stock markets are going down again. It may be a coincidence, but it makes sense since Donald Trump has a very protectionistic views on the economy. History taught us that protectionistism has never helped an economy in the long term. It will be very bad for international trade and it will have a domino effect on other countries, which will also start protectionistic measures as a reaction. Coming Tuesday, the 8th will be the day of the elections. A win for Hilary Clinton will be a win for the stock market (in the short term). A win for Donald Trump will be a loss in the stock market (in the short AND long term).

Leave a Reply