Veteran economist and Newsmax Finance Insider Larry Kudlow tells Newsmax TV once Donald Trump finally defeats Hillary Clinton to win the White House, stocks may slide but savvy investors should be prepared to "buy the Trump dip."
Trump has “got a growth plan that the market has really ignored for whatever reason,” Kudlow, a senior economic adviser to the Trump campaign, said Thursday on "America Talks Live."
“Even if the market dips, let's say on Election Day or the day after on a Trump victory, I would recommend buying those dips because Trump has a pro-growth program which will help growth, profits, wages, jobs, capital, will bring corporate money back home, help small business, ” Kudlow said. “Smart investors will buy this dip,” he said, as stocks would then settle down and eventually rebound once the new administration settled into office.
Trump’s victory is “something that's going to change attitudes in the financial world,” Kudlow predicted.
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"There's really no way to prove this, OK, but a lot of pundits believe the stock market favors Hillary and that the reason that they favor Hillary is she is more of a known quantity," Kudlow told Steve Malzberg.
"That people are familiar with her and that they're not familiar with Trump and they don't know what he's going to do and they're worried a little bit about protection. I never bought that, I just want to make that very clear," Kudlow said.
"Trump's plan to slash taxes, particularly business taxes, to deregulate, to get rid of Obamacare, to unleash energy, to sort of sweep clean corrupt Washington in my view has always been bullish for stocks rather than bearish for stocks," Kudlow said.
And with the stock market in a slump over the past few weeks, "all of a sudden Hillary has become, you know, she's not the safe candidate anymore," said Kudlow, who under President Ronald Reagan was the associate director for economics and planning, Office of Management and Budget, Executive Office of the President, where he was engaged in the development of the administration’s economic and budget policy.
He also is "absolutely" convinced that members of Clinton's senior staff may go to prison on charges of lying to the FBI — a development that would make her term as president next to impossible to carry off. "If Hillary wins and she is under investigation, week after week, month after month, these things are going to be stretched out," Kudlow said.
"If all of a sudden her senior staff starts going to jail because they lied to the FBI, which I think is absolutely going to happen, I don't know how she governs, I don't know how she does business with the Republicans.
"If her whole group is going to be re-interviewed and reinvestigated … if they're going to go and look at the Clinton Foundation, how could Hillary possibly govern? I don't understand this. She'll never get anything done."
With her White House staff being probed, "all her time is going to be taken up at these investigations and planning and plotting for them," Kudlow added. "[Top Clinton aide] Huma Abedin and some of her people may wind up going to jail."
Last week, FBI Director James Comey announced he was reopening the investigation into Clinton's use of a private email server while she served as secretary of state based on new emails seized in a separate probe of Abedin's estranged husband, Anthony Weiner.
It is not yet known if there is anything relevant to the Clinton case in the Weiner emails, which are being looked at in connection with his alleged sexting to a 15-year-old girl.
Larry Kudlow is a senior contributor at CNBC.and host of "The Larry Kudlow Show." His new book is “JFK and the Reagan Revolution: A Secret History of American Prosperity,” written with Brian Domitrovic.
To find out more about Larry Kudlow and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate web page at www.creators.com
(Newsmax wire services contributed to this report).
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