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McCain: Stock Plunge Will Hurt Democrats in Presidential Election

McCain: Stock Plunge Will Hurt Democrats in Presidential Election

By    |   Friday, 22 January 2016 10:18 AM


Sen. John McCain said that the recent U.S. stock market plunge will hurt the Democrats’ chances of winning the White House in November, just as a market crash did his 2008 bid for the presidency, The Wall Street Journal reported.

“In our daily tracking, we went from three points up to five points down in 24 hours,” the Arizona Republican said of his standing in the polls when markets went into a free-fall in 2008.

In September 2008, McCain suspended his campaign against then-Sen. Barack Obama, saying he needed to get back to Washington to work on a bailout package.

McCain said that he bore the brunt of public outrage because voters blamed Republicans, since a Republican, George W. Bush, then occupied the Oval Office, the WSJ reported.

But he said that now it is Democrats who are likely to suffer, since Obama now occupies the White House and is a Democrat. “We have a Democrat president,” McCain told the WSJ. “People hold presidents responsible.”

The U.S. stock market, tracking tumbling oil prices, has failed to sustain any rallies this year as risk-averse investors search for signs of stability. The S&P 500 is down 8.6 percent in 2016, having closed higher on only six of the 13 sessions, Reuters reported.

"I don't think anybody really expected to see this kind of rout in global equities at the start of the year," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida. "At some point, you do shake all the bad blood out."

To be sure, some think there is actually some presidential sway over the markets in a weird way you'd never realize: The eighth year of a U.S. president's term has been bad news for stocks.

The new year of 2016 marks President Barack Obama's eighth year in office. “Which means we should've seen this stock market collapse coming,” Business Insider U.K. explains.

J.C. O'Hara, chief market technician at FBN Securities, noted that going back to 1920, the eighth year of a US president's term has been bad news for stocks, Business Insider's Myles Udland reported.

“The eighth year of a presidential term has seen the Dow fall about 15% on average since 1920. The two most recent examples are 2000 and 2008, which saw the end of the Clinton and Bush 43 years as well as the collapse of the tech bubble and the U.S. housing market,” BI report said.

"Of course, years ending in "5" after mid-term elections were supposed to be bullish for stocks, particularly those years that fell during the third year of presidential terms. 2015 saw stocks fall," BI reported.

(Newsmax wire services contributed to this report).

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Sen. John McCain said that the recent U.S. stock market plunge will hurt the Democrats' chances of winning the White House in November, just as a market crash did his 2008 bid for the presidency, The Wall Street Journal reported.
john mccain, stock market, democrats, election
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2016-18-22
Friday, 22 January 2016 10:18 AM
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