What This Presidential Election Will Do to the Stock Market

TL;DR

The stock market is currently overvalued, making it unlikely to go up regardless of who wins the election.

Transcript

alright guys I'm Phil town from rule 1 investing I want to talk to you a little bit about the upcoming presidential election first off let me kind of set up the situation in the stock market the stock market typically ranges between value of about sixty percent of GDP and a hundred percent of GDP when it's a hundred percent it's very pricey unlikel... Read More

Key Insights

• ❓ The stock market is currently overvalued at 130% of GDP, suggesting a potential crash.
• 😃 Clinton's policies may lead to higher taxes, bigger government, and more globalization.
• 🌍 Trump has a more libertarian stance on national defense and trade agreements, which could bring uncertainty to the market.
• ✋ Small businesses would be negatively impacted by higher taxes and may cut back on hiring.
• 🖕 Globalization and outsourcing have negatively impacted the middle class.
• 🖕 Trump's policies could potentially benefit the middle class but may also bring economic uncertainty.
• 🎁 Both candidates present risks and potential challenges for the stock market.

Questions & Answers

Q: How will the stock market be affected if Hillary Clinton is elected?

If Clinton is elected, we can expect to see bigger government, more globalization, higher taxes, and more government programs. This may result in a stagnant stock market and potential long-term negative impact on the middle class.

Q: How will small businesses be affected by higher taxes under Hillary Clinton?

Small businesses, which account for 70% of employees in America, will be negatively impacted by higher taxes. Many small business owners fall into the tax bracket that will experience increased taxation, leading to potential hiring cuts and a competitive disadvantage for US corporations.

Q: What are Trump's views on national defense and international relations?

Trump has a more libertarian perspective on national defense and prefers a less interventionist approach. He may be open to letting countries like Russia and China take more control in certain regions, which could have destabilizing effects on global politics.

Q: How does Trump's stance on trade agreements differ from Clinton's?

Trump opposes agreements like NAFTA and TPP, viewing them as detrimental to the middle class by enabling corporations to outsource jobs. He may implement tariffs and trade barriers, which could lead to economic uncertainty and potentially trigger a global economic war.

Summary & Key Takeaways

• The stock market is currently priced at 130% of GDP, which is historically high and suggests a potential crash.

• The two candidates, Trump and Clinton, have different views on government involvement and globalization.

• Clinton's policies may lead to higher taxes and more government programs, while Trump's policies may lead to economic uncertainty.