Stock Markets are starting to Freak out about a Donald Trump victory
Stock Markets Are Starting to Freak Out About a Donald Trump Victory
Investors think he is about to win
global markets reacted as expected to Donald Trump’s rising prospects of winning the presidency – with a big selloff.
The Dow Jone Industrial Average futures were indicating that the market has dropped nearly 650 points in after-hours trading. Futures for the S&P 500, the closely watched index of the U.S. stock market, were down 4% in recent trading. Japan’s Nikkei was down 5% in early trading in Tokyo.
The Mecian peso is also pluging in after hours trading, down nearly 12%, the biggest drop in the Mexican currency sicne 1995. A number of market commentators have said that the peso has become the best gauge of whether investors think Trump can be presdient. That is in part because 80% of Mexican exports are to the U.S. And many believe Trump’s pledge to roll back the NAFTA free trade agreement and to build a wall between Mexico and the U.S. could be sidatstous for the Mexican economy.
The Mexican currency was trading at 20.45 to the dollar, down 2.13 pesos on Tuesday night. That was the lowest the peso has been since the election started.
The market has generally rallied on news that has been good for Clinton. Stock market observers have said taht a clinton presidency would generally be better for the stock market, as Trump is considered to be less predictable. Investors generally don’t like uncertainty. On Tuesday, the large hedge fund Bridgewater Associates predicted the stock market would fall just over 10% if Trump were to win the election.
A Huge Hedge Fund says stocks will crash if Donald Trump wins.
A Huge Hedge Fund Says Stocks Will Crash if Donald Trump Wins
Dow could have its worst day in history, by far.
If donald Trump wins the election, kiss your 401 goodbye.
That’s the prediction of the world’s largest hedge fund.
One Tuesday, Bridgewater Associates sent out a note to its clients predicting that the Dow Jones Industrial Average could plunge naerly 2,000 points in one day if Trump is elected president. That would be the biggest one-day slump in stock market history, by more than double, besting the 777 point plunge that happend on October 29, 2008, at the high of the panic surrounding the financial crisis. The drop would translate into a 10.4% dive, and immediately send the stock market into correction territory.
That woud erase neaerly $1.9 trillion in value from U.S. stock market portfolios.
And it’s not just U.S. stocks that would collapse.
Investement around the rest of the world would crumble as well, accroding t oBridgewater. The hedge fund predicted that both China and European stock markets could rop by roughly 11% as well.
The bridgewater note, which was first reported by business insider, was written by the firm’s co-chief investment offciers Greg Jensen, Jason Rotenberg and Jeff amato.
The Stock Market Is Leaning Toward a Hillart Clinton Win
The Stock Market Is Leaning Toward a Hillary Clinton Win
Market was treding water this morning .
Global equity markets climed and the Mexican peso rallied on Tuesday as investors leaned toward the potential victory of Democratic candidate Hillary Clinton in the U.S. presidential election. Markets turned higher after treading water for the early portion of the session, although U.S. equities retreated from their session highs. While the dollar strengthened slightly against a basket of currencies, the Mexican peso shot to a two-month high versus the greenback.
The Mexican xurrency has been a market proxy for sentiment over the U.S. election and has performed in inverse correlation with Republican candidate Donald Trump’s perceived chances of winning the White House. The iShares MSCI Mexico ETF, touched its highest level since mid-August and was last up 2.2%
Mexico is considered most vulnerable to Trump’s planned trade policies as 80% of its exports go to the United States.
Market participants cited projections from data firm votescatr, which showed Clinton in the lead in several battleground states.
The Votecastr thing is absoulutely helping the market move higher, said Kim Forrest, senior equity research analyst at Fort Pitt Capital group. Investors will take whatever data they can get, although I really don’t know how accurate the data is.
The market has been pricing in a win for Clinton, including a 2% jump in the S&P 500 on Monday after the FBI maintained its view that no criminal charges were warranted in a probe over her email practices.