Will Markets Actually Crash if President Trump Isn't Reelected?

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President Trump told businessmen in India that the stock market will plunge if he isn’t reelected.

U.S. stocks have sold off all week, with the S&P 500 down 6% from the all-time high it hit last week. The spread of the coronavirus through Italy and several Asian countries is sparking investor fear that consumers globally will stay home and not shop, and also that manufacturers around the globe, dependent on China for parts, will cease to have access to those supplies and won’t be able to meet demand.

Trump thinks the market reaction to the virus is overblown and that, "If I don’t win you’re going to see a crash like you’ve never seen before.

Trump recently said he wants to implement more fiscal stimulus in the economy, touting a middle-class tax cut as the most likely form.

Several Democratic presidential candidates have been proposing policies that would be beneficial to the middle class, even though they also are likely to propose higher corporate taxes to fund their programs.

Bernie Sanders and Pete Buttigieg both propose policies to redistribute money to middle class Americans for more affordable college tuition, housing and medicare. This would require higher taxes, especially on companies. This would act as a major negative for stock prices as corporate earnings would fall, although the hope is that middle class Americans spend more in the long run. 

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