Donald Trump Warns of Stock Market Crash if He Loses in 2024
As the 2024 US presidential election looms on the horizon, Donald Trump is back in action and does not hesitate to use controversial methods in an attempt to ensure his re-election. In a recent message posted on his social network Truth Social, the former White House occupant waved a doomsday scenario. He predicted that if he lost the election, the country would face a historic stock market crash with devastating consequences.
A Bold Comparison with Black Thursday of 1929
To back up his apocalyptic scenario, Donald Trump explicitly refers to Black Thursday of October 24, 1929. The New York Stock Exchange experienced a collapse of more than 12% in a single session, leading to the bankruptcy of thousands of investors. This event marked the beginning of the Great Depression, a major economic crisis of the 1930s.
By brandishing the specter of such a stock market crash, Trump tries to present himself as the only bulwark against the abyss. According to him, the stock market is currently high only because people believe and expect him to win the 2024 election.
A Risky Strategy in the Face of Economic Difficulties
Naturally, such a parallel is more a matter of political strategizing than serious economic analysis. Nothing indicates that the election of Joe Biden or any other candidate would provoke a stock market crash as violent as in 1929.
However, this alarmist statement comes at a time when the US economy is already under stress. With record inflation, the threat of a recession in 2023, and the end of the Federal Reserve’s ultra-accommodative policies, some investors are concerned about a potential stock market accident.
Donald Trump’s Chances of Victory in 2024?
Despite his bluster, there is no guarantee at this stage that Donald Trump will be able to secure the Republican nomination, let alone defeat his Democratic opponent in 2024. His current legal troubles are a serious handicap to his chances.
Therefore, these apocalyptic predictions seem quite haphazard. Even though markets anticipate and incorporate economic policies into their valuations, many other factors drive prices. There is no indication that Wall Street would collapse under a new president.
In issuing this alarmist message, Donald Trump is taking a risky political gamble to secure victory in 2024. But by irresponsibly waving the red flag of a major stock market crash, he could create a threat that might backfire on him. Especially if the markets were to contradict his grim predictions. His chances of reelection in the United States are still uncertain. His most ardent admirers are now hoping that this move will not turn out to be a mere flash in the pan.
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