U.S. Presidential Race Points Could Spark Stock Market Crash
The editor of the Gloom, Boom, & Doom Report, known as Dr. Doom, says if you want evidence that the U.S. stock market is in serious hot water, you can look at the candidates running for the 2016 U.S. presidential election.
Faber is no stranger to bold statements on U.S. recession and economic collapse, having previously made bearish announcements about an impending U.S. stock market crash.
He describes the current roster of presidential candidates as “relatively questionable,” in terms of their quality, integrity, and suitability to head the most powerful nation on the planet.
Speaking on CNBC’s Trading Nation on Tuesday, Faber asserted that with all of the intellectual assets available to a country as powerful and successful as the U.S., the fact that it can’t produce better candidates is a troubling sign. (Source: CNBC, last accessed September 24, 2015.)
Could U.S. Elections Spark a Stock Market Crash in 2016?
National polls produced by Monmouth University in September show Hillary Clinton as the lead candidate for the 2016 Democratic nomination by a comfortable margin, with Bernie Sanders and Joe Biden trailing behind. (Source: Monmouth, last accessed September 24, 2015.) The Republican nomination is currently led by none other than the infamous Donald Trump, with Ben Carson and Jeb Bush struggling to keep up.
Faber disclosed that he is not in fact an avid follower of the American political scene, but contended that Republican candidate Ted Cruz would the greatest choice if we want to avoid a possible financial collapse.
Cruz, says Faber, is relatively conservative, and that can only be a good thing to prevent a stock market crash.
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The latest commentary from Faber is typically bearish regarding a possible U.S. stock market collapse, as well as the dangers of an economic crash stemming from the stock market collapse in China.
Faber has been predicting a stock market crash for several years now, citing a Chinese economic slowdown, declining currency values, and volatility in bond markets as the U.S. Federal Reserve struggles with whether or not to raise interest rates.
The Fed may be forced to implement more quantitative easing measures if the current market volatility continues, says Faber.
But not all is gloomy. Faber predicts that while a stock market crash is still possible, and the threat of global economic collapse could very well be looming on the horizon, stocks will likely bounce up somewhat in the near-term.