+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

MARK CUBAN: Stocks could crash 20% if Trump becomes president

May 17, 2016, 19:24 IST

CNN

Mark Cuban thinks stocks could collapse into a bear market if Donald Trump becomes US president.

Advertisement

The investor and reality-TV star told CNN on Monday that stocks could fall 20% if the presumptive Republican nominee wins in November.

He said investors would not be able to put up with the uncertainty attached to a Trump presidency.

"When you're flip-flopping, when you're not sure what the candidate's going to say from one thing to another, that uncertainty potentially as the president of the United States - that's the last thing Wall Street wants to hear," Cuban told CNN's Erin Burnett.

"I can say with 100% certainty that there is a really good chance we could see a huge, huge correction" that could be as much as 20%, he said.

Advertisement

Cuban told CNN that it seems Trump hasn't done extensive homework on some the economic issues facing America, including the ones he says he'll fix.

But he gave Trump credit for shaking up the Republican establishment. He told CNNMoney last week that he had been asked to run against Trump, but thought it was too late.

On Wall Street, fear is building about the elections in a year that started with a 9% stock-market plunge. It's almost one year since the market made all-time highs, which would be the longest streak in about three years.

David Kostin, chief US equity strategist at Goldman Sachs, listed the election as one of five risks that could trigger a correction in the next few months.

"The US presidential election is now part of every client conversation," Kostin wrote in a note last Friday.

Advertisement

NOW WATCH: FORMER GREEK FINANCE MINISTER: The single largest threat to the global economy

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article