Investment guru Mark Mobius warns that the stock market could plunge 25% if President Donald Trump isn’t re-elected, losing for example to Democrat Elizabeth Warren.

“I’ve said that if [President Donald] Trump is not re-elected, the market would go down,” Mobius, founding partner of Mobius Capital Partners, recently told CNBC. A 20% or 25% drop “is probably possible,” he said.

Mobius explained that the Trump administration’s trade war with China isn’t having a favorable impact on business.

Mobius said that the trade conflict is causing a slowdown in the global economy, adding that he hopes the U.S. and China will come to an agreement soon.

Mobius has previously suggested that Trump has been a boon for stocks.

In August, Mobius said the U.S. markets would go “haywire” if Trump failed to win a second term in the White House due to the loss of his “business-friendly” policies.

However, Wall Street has little to fear about Trump losing re-election, according to some recent research.

Moody's Analytics economic models have missed just one presidential election since 1980 – when it slighted President Donald Trump in 2016 – and now three are pointing to an even larger Trump victory in 2020.

After all, "the economy, stupid," as James Carville legendarily said.

"If the economy a year from now is the same as it is today, or roughly so, then the power of incumbency is strong and Trump's election odds are very good, particularly if Democrats aren't enthusiastic and don't get out to vote," Moody's chief economist Mark Zandi told CNBC. "It's about turnout."

Moody's three economic models project at least 289 electoral votes for Trump and as many a 351, per Zandi.