Did Trump correctly predict a stock market crash?
In 2020, investors had plenty of mixed emotions. On one hand, we experienced a ‘mini’ stock market crash in March of 2020, followed by record gains the rest of the year. Looking back, did Donald Trump’s stock market crash prediction come true?
Trump stock market crash prediction
I sure could go for a mean tweet and all-time stock market highs right about now. #SiliconValleyBank #stockmarketcrash pic.twitter.com/EgMv8aJ2L8
— Matt Clark (@MattClarkReport) March 10, 2023
Well, well, well it looks like Trump was right again. Add that to the growing list. The ‘Trump was right’ list is about to be as long as one of those pesky CVS receipts.
He correctly predicted that TikTok would be an issue and called for its ban. He correctly claimed the origin of you know what. And he also predicted that Biden would be ‘selected.’
This is one Trump stock prediction that is sadly right though. I so wish he were wrong here and we were experiencing slight gains as the US economy tries to stabilize in 2023.
However, it’s looking more likely that we are recession bound. And that there could be a full-blown stock market crash in 2023.
Boy, I sure do miss his mean tweets right about now.
In all seriousness though, with the recent collapse of Silicon Valley Bank, the US economy is looking eerily similar to 2008, when it experienced both a financial and housing market crisis.
How did we get to this point?
Well, it certainly isn’t Trump’s fault. To the contrary it could be something to do with the massive payments heading to Eastern Europe. But, that’s just a guess.
Looking ahead, it seems unlikely that the Fed can keep raising rates.
I don’t remember banks collapsing under Trump… but don’t worry guys it’s only a matter of time till Biden/media blames him for that too. It has nothing to do with high interest rates / fed rate hikes necessitated by record inflation caused by his out of control spending.
— Donald Trump Jr. (@DonaldJTrumpJr) March 12, 2023
Even Donald Trump Jr. has weighed in with an accurate Tweet.
Instead of raising rates again at the next Fed meeting, it’s now very likely that they’ll keep them flat.
This is incredible:
After the collapse of SVB, Fed futures now show a 23% chance of ZERO rate hikes this month.
The base case is now rates rising to 5.00% while just last week it was 6.00%.
Futures now see 5 rate CUTS by next summer.
Markets think that SVB broke the system. pic.twitter.com/PU2oPde6E7
— The Kobeissi Letter (@KobeissiLetter) March 13, 2023
Would cutting rates be bullish?
On one hand yes, it may help tech stocks like Tesla, Coinbase and others bounce back quicker. On a larger scale though, it will spread fear into the markets that the Fed has lost control of inflation.
We may very well be headed for a deep recession now.
If that’s the case, tech investors already experienced max pain in 2022. In recession environments, tech stocks are likely to slide, but recover much faster than other sectors (oil, etc.).
We won’t know for sure until the next Fed meetings which is March 21-22 and then again on May 2-3.
But in the meantime, the Trump stock market crash prediction is sadly coming true under Joe Biden.
