Trump Predicts Stock Market Crash

But as you might have guessed, the usual suspects are pooh-poohing the Donald’s concerns, just like they did before the housing market went belly up. Several billionaires, however, agree with the presumptive Republican nominee that we are looking at a potential bubble that could pop at any minute:

“Trump isn’t the first billionaire to warn against overvalued tech companies…
Microsoft Corp. (Nasdaq: MSFT) co-founder Bill Gates and venture capitalist and entrepreneur Mark Cuban have criticized what they call unicorns – private companies with weak fundamentals valued at over $1 billion, according to GeekWire.

Cuban also cited another reason for a stock market crash: Trump himself. Cuban told CNN on Monday he thinks with “100% certainty” that Trump will cause a big correction in the markets.

On the other hand, U.S. Federal Reserve Chair Janet Yellen emphasized that the U.S. economy isn’t in a bubble back in April. Other economic and investment experts tend to agree, citing that stock prices, while high, aren’t near the extremes of the dot-com bubble in 1997-2000, according to CNN Money.

Typically, it takes several factors at the same time for the stock market to enter a serious decline. For example, 9/11 was a major contributing event to the dot-com bubble.”

Modernly, some of these factors could include: the economy falling into a recession, a Fed policy blunder, or a commodity price crisis, according to CNN Money.

A Foreboding Trump Isn’t New

This isn’t the first time Trump has predicted a stock market crash or a tech bubblethis year.

On April 15, Trump said that a stock market crash “will be coming” and that we’re also in a big bubble. He also said that the United States was on track for a huge recession, according to CNN Money.

And back in October 2015, the presumptive Republican nominee echoed the same fears of a stock market bubble to The Hill.

Source: Money Morning

https://www.youtube.com/watch?v=3BrxRDC1S_s