In April of last year I wrote an article claiming that if Trump won the election, the Stock Market would experience a huge crash after January 20, 2017. I am now afraid that my prediction may come true.
During the eight years of President Obama’s Administration, the Dow hit record highs. Large investors are fearful that a Trump presidency will produce the opposite reaction.
Carl Ichan, George Soros, Jim Rogers, and other billionaires are preparing to ‘sell short’ in anticipation of a sudden and dramatic drop in stock prices. They will make billions of dollars if millions of Americans lose their entire investment.
My original prediction was based on two assumptions. Trump would establish tariffs which would cost offshore corporations billions of dollars in revenue.
The second assumption is that knowing Trump’s inclination to make rash judgments, paired with his extremely weak temperament, he would move our nation into another unwinnable war; possibly nuclear.
One factor affects the Dow more than any other; uncertainty. Trump offers plenty of that; no one ever knows what he will do next, including Trump himself.
Fortunately I am too poor to have any investments, but I have many friends who have 401K’s. Billionaires are expecting that the vast majority of small investors will lose everything, and place our nation on a path to a depression.
More of the ‘Trump Effect?’
By James Turnage
Follow me on twitter; @jamesturnagenov