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Mark Mobius: Stocks to Go 'Haywire' If Trump Loses 2020 Election

By    |   Thursday, 01 August 2019 03:30 PM

Investment guru Mark Mobius predicts that U.S. stocks will plunge if President Donald Trump doesn’t win a second term in next year’s election.

“I think the markets then will go haywire because they’ve been depending on Trump policies to keep on pushing the market up and also higher growth rate in the U.S.,” Mobius told CNBC.

The S&P 500 and the Dow Jones Industrial Average have risen by more than 30% since the beginning of 2017, while the Nasdaq Composite has risen by around 45%, CNBC.com explained.

Mobius, co-founder of Mobius Capital Partners, said U.S. markets have continued to climb higher partly because of Trump’s policies. The president made several moves that many considered pro-business since he took office in 2017, such as slashing corporate tax rates, CNBC explained.

He added that for now, “it doesn’t look likely” that Trump will lose. However, sentiment in the media appeared to be “overwhelmingly” against the president — and that could continue to build until the election next year, he explained

“That’s why I’m a little concerned about this,” he said.

Meanwhile, Democratic presidential candidate Elizabeth Warren recently warned of “serious” signs that the U.S. economy could skid into a downturn either this year or next, as she proposed a series of steps to minimize the risk.

Warren, 70, who serves in the U.S. Senate and is considered a top-tier candidate in a crowded field of Democrats hoping to challenge Trump in the Nov. 3, 2020 election, called on federal regulators and Congress to act “before another crisis costs America’s families their homes, jobs and savings.”

In a statement, Warren said “warning lights are flashing” and the chances of a downturn are “high and growing.”

The U.S. economy has been expanding for 10 years, the longest on record, with low unemployment and inflation, and a strong stock market, Reuters explained.

Nevertheless, Warren labeled the U.S. economy “precarious” amid high household and student debt. She warned that an increase in interest rates could “plunge families over a cliff.”

(Newsmax wire services contributed to this report).

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Mark Mobius: Stocks to Go ‘Haywire’ If Trump Loses 2020 Election
mark mobius, stocks, haywire, trump, loses
Thursday, 01 August 2019 03:30 PM
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