Donald Trump Warns Americans To Get Out Of The Stock Market As The Dow Falls For A 7th Day In A Row

Donald Trump - VOA Public DomainOne thing that you have to appreciate about Donald Trump is that unlike most politicians, he actually says what is on his mind.  On Tuesday, Trump told Fox Business that he had already gotten out of the stock market, and that he foresees “very scary scenarios” ahead for investors.  And of course things have already started to get a bit ominous for those holding stocks over the last week and a half.  The Dow Jones Industrial Average has now closed down for seven days in a row, and that is the longest losing streak that we have seen since the panic of last August.  Over the past 12 months we have seen virtually every other major global stock market experience at least one major crash.  Could the U.S. markets be next?

What Trump told Fox Business earlier today was actually right on the money.  Our financial markets have been artificially inflated by the Federal Reserve, and all artificial bubbles of this nature eventually burst.  The following comes from a Bloomberg article that was posted on Tuesday entitled “Trump Urges Exit From Market Boosted by ‘Artificially Low’ Rates“…

Donald Trump on Tuesday said interest rates set by the Federal Reserve are inflating the stock market and recommended 401(k)-holders to get out of equities, just like he did.

“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’s comments come at a time when we are getting a whole host of bad news about the U.S. economy.  We just learned that U.S. GDP grew at a meager 1.2 percent annual rate during the second quarter, the rate of homeownership in the United States just hit an all-time record low, and corporate earnings have now been falling for five quarters in a row.

But perhaps most alarming of all is what is happening to the price of oil.  As I discussed yesterday, the price of oil has plunged well over 20 percent since June 8th, and it was down again on Tuesday.

As I write this article, the price of U.S. oil is sitting at just $39.66.  The psychologically-important 40 dollar barrier has been broken, but the price of oil doesn’t even have to go down another penny to do immense damage to the U.S. economy.  If it just stays at this price, we are going to bleed more energy industry jobs, more energy companies are going to default on their debts, and more financial institutions that are exposed to the energy industry are going to get into serious trouble.

All the ingredients are there for a major financial crisis, and perhaps that explains why so many investors are flocking to precious metals such as gold and silver right now.

The price of gold has gone up for six trading days in a row, and silver is approaching 21 dollars an ounce.

Meanwhile, things continue to unravel on the other side of the planet.  In Europe, let’s just say that the recent bank stress tests did not go as well as many were hoping

If the goal of the EBA Stress Tests was to reassure investors and regain confidence that ‘all is well’ in Europe’s increasingly fragile and systemically interconnected banking system, then it has utterly failed. The broadest European bank stock index is now down 7% from the post-stress-test spike highs, Italian banks are at record lows and being halted (despite Renzi’s promises), Commerzbank is struggling with capital raise chatter, and Deutsche Bank and Credit Suisse are tumbling after being booted from the Stoxx 50.

It is funny – every time I write a major article about Deutsche Bank, their stock goes to a new record low.

And it has just happened again.  Less than a week ago, I posted this article, and on Tuesday Deutsche Bank plummeted to a brand new record low as renewed fears about the health of the bank spooked investors.

Problems at Deutsche Bank and Credit Suisse are now becoming so obvious that even mainstream analysts are admitting that they are “causing some anxiety”

Deutsche Bank and Credit Suisse … are dropping to where they were after the Brexit vote,” said Bruce Bittles, chief investment strategist at Baird. “That’s causing some anxiety.”

Deutsche and Credit Suisse’s U.S.-listed shares closed down 3.75 percent and 4.67 percent, respectively.

In Europe nobody is waiting for financial stocks to crash, because they are already crashing.

A “too big to fail” crisis is rapidly unfolding across the entire continent, but most Americans are totally oblivious to what is going on over there.  Instead, our major news outlets are feeding us an endless barrage of negative headlines about Donald Trump and a steady stream of positive headlines about Hillary Clinton.

I wonder who they want to win the election?

Of course I am being sarcastic.  The days when the mainstream media at least pretended to be “independent” are long gone.

But as far as the stock market is concerned, I am quite confident that Donald Trump will be vindicated.

And if you don’t want to believe Donald Trump, I would encourage you to consider what Jeffrey Gundlach, the chief executive of DoubleLine Capital, has been saying.  He has been right about the markets in recent years over and over again, and just a few days ago he publicly stated that “stocks should be down massively” and that now is the time to “sell everything“.

Unfortunately, very few people are likely to change course at this stage.  Most of those that could see the warning signs have already gotten out of the market, and those that prefer to have blind faith in the system are not likely to listen to warnings from men like Trump and Gundlach.

So now it is just a waiting game.

We shall see if Trump and Gundlach are right, and those that end up on the correct side of the equation are probably going to make a boatload of money during the months ahead.

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  • Zoeg

    Your daily dose of fearporn courtesy of fake-Christian and Zionist shill Michael Snyder…now gullible and ignorant audiences, please undust your credit cards and purchase the garbage advertised on Snyder’s website (don’t forget to mention GW Blog to get a 35% discount).

    • Not Blind

      I’m so glad other people see through Synder as well. I am quite shocked that otherwise credible websites put up so many of his articles.

  • Brabantian

    On the one hand, the great UK researcher Aangirfan writes: “Hillary Clinton is the candidate of the sophisticated fascists & Trump is the candidate of the unsophisticated fascists.”

    But a profound question now – which we maybe cannot answer unless Donald Trump ‘wins’ the dodgy fraud-infested US election process & survives to take office – is whether Trump is a ‘stealth’ candidate with a secret pro-humanity agenda as he dances with various devils to try to get elected … We can see the signs of this in Trump’s 2 big truth bombs:

    #1 is when Trump sometimes speaks of dis-banding Nato, closing the overseas US military, ending the wars, making a deal with Putin etc

    #2 is when Trump sometimes speaks of the most forbidden of all USA topics, the corruption of the US judiciary, its judges who serve the US oligarchy & lead & ‘legalise’ the horrors of US society & its global predations … Ironically, the USA needs an Erdogan-style purge of its judiciary, very very badly, in favour of ‘people’s grand juries’ & anti-oligarch tribunals

    Donald Trump at times drops mini-truth-bombs as well, hinting e.g., that the official 9-11 story is false … that the US voting system is fraudulent …

    We have things like the somewhat credible ‘US Justice Dept leaker’ on 4chan, who argues that if Trump is President, the long-suffering honest US gov officials, now suppressed, will be able to bring criminal charges against many corrupt figures, including the highest, such as Hillary & the judges

    Donald Trump is certainly not ‘clean’ nor ‘moral’ in his life … but the 4chan leaker said Trump is sickened to death by the trashing of human society by the US oligarchy … Trump saw that he himself has a chance to re-make history, & change the course of the USA Titanic … To do this & survive, Trump must dance with the devil of course

    Maybe it is all a psy-op … But Donald Trump shows signs of behaving as someone MUST behave, if he is not to be assassinated gaining the US Presidency … whilst dropping hints he is going where the (early-corrupt-murderous, but later-heroic) JFK & Richard Nixon were going when they changed course & then were shot dead / impeached & forced to resign … Trump needs to be much more clever than even the very clever JFK & Nixon, to win this game, & live

    We have all been scarred by the disappointed ‘hope’ in the fraud Barack Obama … But there is some ‘hope’ in Trump that will not go away, with strong emotional pull, & some merit too

    Certainly Trump says horrible things … E.g., Trump talks of torturing people, whilst Hillary Clinton has actually taken part in torturing many people

    Donald Trump & Hillary Clinton are both self-contradicting people with ugly oligarch connections, even ones they share

    We KNOW Hillary Clinton is a proven criminal war-mongering horror, it is beyond any doubt, there is totally NO HOPE if she is next Yank USA President, her actions in government over many years have proven that

    It may be impossible to ‘know’ if Trump is a secret-mole ‘half-good-guy’, unless Trump lives to take office

    In short … ZERO HOPE in Clinton … but a thread of hope in Trump … We cannot fault desperate Yank USA voters for clinging to that thread

    • Rufus Peckham

      I share these same sentiments.

    • jadan

      Wishful thinking. But kind of refreshing. It is tiresome, this full court MSM press against Trump. These people have no shame, especially Ariana Huffington.