Well, we are now almost exactly three months away from the November 8 election, and if Trump wants to really boost his chances, a market crash right now would be certainly most welcome by his campaign.
That may be why Trump on Tuesday urged his supporters holding 401-(k) to get out of equities as interest rates set by the Federal Reserve are inflating the stock market.
“I did invest and I got out, and it was actually very good timing,” the Republican presidential nominee said in a phone interview with Fox Business. “But I’ve never been a big investor in the stock market.” “Interest rates are artificially low,” Trump said. “The only reason the stock market is where it is is because you get free money.”
Trump also warned of “very scary scenarios” ahead for investors.
To be sure, Trump’s previous commentary on a stock market bubble has not won him many fans at the Fed, and certainly not Janet Yellen, whom he said back in May, he would “most likely” replace. Amusingly, Yellen has repeatedly said the Fed intends to raise interest rates gradually, as volatility and sudden drops in jobs and GDP, have delayed such plans. As a result, many have also said that a Fed rate hike before the presidential election is out of the question.
In an amusing tangent, Bloomberg here notes that “Republican and Democratic administrations alike typically don’t comment on the Fed’s monetary policy, out of respect for the central bank’s independence.” We can only assume that Bloomberg does not refer to the Fed’s “independence” from Goldman Sachs, which numerous civil and criminal cases have shown is not the case, the same Goldman which just happens to be one of Hillary’s biggest fans.
And an amusing paradox emerges when considering that none other than both Jeff Gundlach and, as of Sunday night, Goldman Sachs both urged investors to sell equities. One wonders if just like Trump was accused of being a Putin spy for diverging from the mainstream anti-Russia narrative, accusations will now emerge that he is also a Goldman double agent, seeking to crash the market just so Goldman can load up on the cheap.
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