Wall Street Is Starting to Get Freaked Out About Donald Trump

[DonViejo]

By Michelle Celarier

September 22, 2016
12:36 a.m.

The U.S. stock market, seven years into an almost nonstop bull run, went on a wild ride last week: The Dow Jones Industrial Average swung between 100 and 200 points — up one day, down the next — on four separate days. There hasn’t been such a bout of volatility since late June, when the U.K.’s surprise vote to exit the European Union sent markets on a roller-coaster ride. Volatility is not just apparent in the stock market either. Wall Street strategists say it’s also cropping up in the bond and foreign-exchange markets.

Global markets are jittery about many things right now, but one fear seems to override all others: The polls in the presidential race have suddenly tightened, and Donald Trump might actually become president of the United States of America — with unknown, but possibly very negative, implications for everything from trade policy to foreign relations to monetary policy.

In short, a Trump presidency is the very definition of what markets hate: uncertainty. “Trump is widely considered to be reckless and Clinton is widely considered to be a friend to Wall Street,” explains Chris Irons, an analyst with the equity research firm GeoInvesting. “In terms of which of the two would shoot volatility into the market, he is clearly it.”

Société Générale analysts call it the “Trump factor.” They argue that the tightening of the polls between Trump and Clinton is a big reason for a sell-off in global bonds in September, which has led to the unease in equity markets, Bloomberg reported on Tuesday. Rates on both long-term Treasury and Japanese bonds have been rising since the polls started tightening, SocGen says.

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http://nymag.com/daily/intelligencer/2016/09/wall-street-is-starting-to-get-freaked-out-about-trump.html

[Guy Whitey Corngood]

1. Well, maybe they shouldn't have been financing the rise of fascism as they have for decades. This is

all a direct result of their coddling fascists on the right and trying to squash the slightest hint of pregressivism (sic) on the so called left.

[skylucy]

2. Wall Street does not like crazy. I have always thought that electing Trump

would set the world markets in a tailspin.

[dlk]

3. Better Late Than Never

Too many American have enjoyed the Trump campaign reality show. Given the frat boy mentality of Wall Street and the MSM, it's no wonder. However, now that election day is approaching, the idea of what a Trump presidency would actually mean is sinking in, and they are perhaps having the "oh s**t" moment, as they should have had all along.

[Hortensis]

4. I've been wondering when that dread threat of

"uncertainty" would become real for them, and if the tightening would make them nervous. It really should. Would you leverage yourself to launch a major new venture, for instance, if Trump was elected? Or hole up and wait?

[yeoman6987]

5. October is typically the worst month for stocks

The stock market needs to be stable from now until the election. You think the voters will blame trump? No way.