The Worst Pre-Election Stock Market Ever
The US stock market is coming off its worst week since March. It was also the worst pre-election stock market in history. In his latest podcast, Peter talked about the market, the election and what’s likely ahead.
A weak stock market right before election day doesn’t bode well for President Trump’s reelection, given that he’s touted the stock market as his great accomplishment. Peter has said he doesn’t think Trump will win and that the stock market would ultimately sell off on the reality of a Biden presidency – that it would be “buy the rumor, sell the fact.”
Well, apparently they’re not waiting for the fact and they’re selling on the rumors. They bought on the rumor Biden was going to win and now they’re selling on the rumor that he’s going to win, because a Biden victory is not good for the stock market. It means much higher taxes and that is not going to be offset by the Federal Reserve.”
Most people seem to think that regardless of who wins, even if we have a contested election and don’t know a winner for days or weeks, it really won’t be a problem for the markets because the Federal Reserve will step in and backstop it. Everybody seems confident that the Fed has their back.
The only leg that this market is standing on is the Federal Reserve and money printing. But ultimately, that’s not going to be enough. The market is not going to be able to survive when that is the only support.”
Tech stocks were hit particularly h
Article from LewRockwell