What Happens to the Market if Trump Secures a Second Term?

Here's what you can expect for stocks if Trump DOES pull off a second term… November 17, 2020 UNSUBSCRIBE | ARCHIVES What Happens to the Market if Trump Secures a Second Term? America's Death Spiral Begins January 15? If you’re like most folks, you’re probably wondering how we got here...   America’s institutions are rotten to the core.   Common sense and human decency are relics of the past.   And Americans at each other’s throats.   Well, it wasn’t by accident.    The prophetic analyst who predicted the subprime mortgage meltdown… the financial crisis of 2008… and Brexit…   Says a grand experiment has been conducted on the American people without our consent.   And the horrifying endgame is set to arrive on January 15, 2021…   Will you be ready?   Click here for the full details. Dear Money & Crisis Reader, As I outlined in yesterday’s article, the odds are relatively high that President Trump will secure a second term courtesy of how the legal system handles contested elections. With that in mind, we need to ask, “What is the BIG PICTURE outcome for the markets if Trump wins?” I believe that if President Trump manages to secure a second term, the stock market will go into an ENORMOUS bubble. Why? Because President Trump is OBSESSED with the stock market. He mentioned it 52 times on his Twitter account this year alone. That’s more than once a week! Why this obsession? Because the president knows it’s a simple measure of wealth, that appeals to the average person. Talking about boosting incomes or reducing wage disparities sounds nice. But they’re vague concepts. Saying “stocks are at record highs!” is a specific measure that anyone can understand and interpret to mean “people are getting rich.” The president, for all his flaws, understands sales. And by talking about stocks non-stop, he’s “selling” Americans on the idea that he is creating wealth. (Even if the reality is the market is rising because the Fed is providing record amounts of liquidity.) President Trump and the Fed Speaking of the Fed, President Trump now effectively decides Fed policy due to his constant bullying via his very same Twitter account (and its 87 million followers). Case in point… take note of how the president hounded the Federal Reserve to ease monetary conditions non-stop throughout 2018. The below tweets are two of literally dozens in which the president harangued the Fed to ease conditions. When the Fed was slow to act, the President even went so far as to float the idea of FIRING Fed Chair Jerome Powell and leaking the plan to Bloomberg. I do not expect any of the above issues to change during a Trump second term. If anything, I would expect President Trump’s obsession with stocks to be ever greater. And this means even more pressure on the Fed to create a bubble. Again, I’m NOT saying this is a good thing. Nor am I saying I like what the president does. I’m simply pointing out how he sees the stock market, and what it means for his attitude towards the ultimate driver of stocks: Fed liquidity. What Would a Second Term Bring? So… if President Trump does win a second term. What would his obsession with stocks mean price wise? External Advertisement America's Top Stock Picker Lifts The Lid on Today's Most Overlooked Mega-Trend, and His Next Potential 1,000% Winner He’s made over 40 1,000%+ recommendations with an extraordinary average gain of 2,712%. He’s called the bursting of the dot com and U.S. housing bubbles in advance. He’s even beat out billionaire investing legends in a prestigious trading contest...  And on Nov. 19 at 7pm EST, Eric Fry will unveil the biggest trend to hit the financial world in over 20 years... and give away the ticker symbol– FOR FREE – for what he believes will be his next big winner. Click here to sign up. Well, the Fed has cut interest rates to ZERO and is now running quantitative easing (QE) programs equal to $125 billion per month. Moreover, Fed Chair Jerome Powell has stated that the Fed will not attempt to normalize Fed policy until the U.S. economy has experienced a full recovery to levels that existed prior to the COVID-19 pandemic. And the Fed, as a whole, stated that it will keep interest rates at ZERO through 2023. Yes, 2023. The last time the Fed held rates at ZERO for multiple years while running aggressive QE programs was from 2008-2015. During that time, the S&P 500 nearly TRIPLED. Currently stocks are up 50% from its March lows. If the S&P 500 were to follow a similar move, we'd see the mother of all bubbles — with the S&P 500 rising to over 6,000 over the next five years. And if things REALLY get out of control, as they did in the late ‘90s, we could see the S&P 500 running to 10,000 or higher. This sounds ridiculous, but this kind of move has happened before. Indeed, stocks rose over 140% in just four years during Bill Clinton’s second term as president. With the S&P 500 hovering around 3,500 today, this would mean a run to 8,400 by the end of 2024. Again, this sounds ridiculous. But all bubbles do. And we know this president, more than any other in the last 50 years, is obsessed with stocks. Combine this with a Federal Reserve that is already engaged in the most aggressive QE program in history, and suddenly the S&P 500 at 8,000 in four years doesn’t seem so ridiculous. Best Regards, Graham Summers Editor, Money & Crisis America's FINAL Wealth Transfer Thanks to a recent drastic decision made behind closed doors in this building on March 23rd, 2020 at 8 A.M… …Millions of Americans will likely fall into poverty in the coming months… In what historians will call the end of America’s middle class. 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