Tag Archive for: BEAR MARKET

‘More To Worry About’: Billionaire Investor Says ‘Uncertainty’ From Harris Joining Race Contributed To Market Downturn

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Billionaire investor Ken Fisher said on Wednesday that Vice President Kamala Harris abruptly entering the presidential race contributed to the market downturn because of the unpredictability it provoked.

The Dow Jones Industrial Average closed down 2.6% Monday, while the S&P 500 plunged by 3% and the NASDAQ declined by 3.43% following a dismal Friday jobs report that sparked U.S. recession fears. Fisher, on “Your World With Neil Cavuto,” said Harris unexpectedly joining the presidential race and making it much tighter than when it was between President Joe Biden and former President Donald Trump added to the economic uncertainty that fueled the downturn.

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“There’s always the fear of the Fed doing something stupid … they almost always do something stupid. And then there was the fear of the yen carry trade. There’s all the newness about Harris as the presidential nominee,” Fisher said. “On and on and on … What about Iran adventurism? You can go on and on with fears. The fact of the matter is that corrections always have abundant fears that end up being shown afterwards to be false factors. And fear of a false factor is always bullish because it’s in the market price now. The fact is, when you’ve been as strong as we’ve been for as long as we’ve been in the stock market, it doesn’t take much to get people going.”

“So, this year, unlike most, it was just generally presumed at the beginning of the year that it would be Biden versus Trump. And the fact of the matter is that took a fair amount of uncertainty off the table early,” he added later. “We had unusually low uncertainty because normally you got all the contentious primaries and hoopla hoopla. We knew these two men so well compared to any two that have run before each other. And I’ve said that on your show before there was less to get frittered about. Now that Harris is a new and polls have tightened and … there’s more to worry about, so uncertainty’s up.”

Harris is currently leading Trump by 0.5% in the polls, whereas Trump was beating Biden by 3.1% before he dropped out of the race, according to RealClearPolling averages.

“That’s consistent with the time period of the market falling also. We will get to a winner. We always get a winner in November,” he continued. “We like the winner in November better than we thought we would when we started. And uncertainty will fall, and we’ll have that consistent bull market resuming when it resumes. Exactly when, I don’t know. It could be next week. Could be tomorrow. Could be three weeks from now or the week after that. But the reality is corrections return to bull markets. And this bull market will continue.”

Trump blamed Harris for the market plunge in a series of posts on Truth Social on Monday.

“Of course there is a massive market downturn. Kamala is even worse than Crooked Joe. Markets will NEVER accept the Radical Left Lunatic that DESTROYED San Francisco and California, as a whole,” he posted. “Next move, THE GREAT DEPRESSION OF 2024! You can’t play games with MARKETS. KAMALA CRASH!!!”

Editor’s note: This article has been updated to include additional context from earlier in Fisher’s segment indicating that there were several factors contributing to the market uncertainty that led to the stock market downturn.

AUTHOR

Jason Cohen

Contributor.

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The Stock Market Officially Collapses Into Bear Market Territory

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The stock market closed out a week of intense losses with the Dow Jones falling more than 750 points Friday, entering bear market territory amid a wave of investor fears.

At time of writing, the index had, at its lowest point, fallen more than 2.7% during the day to around 29,300 points, with the Nasdaq and S&P 500 down by 2.7% and 2.64% respectively at time of writing. With the Dow Jones officially falling more than 20% from its recent peak in June, stocks will have entered a slump known by investors as a “bear market” if the losses hold when trading ends Friday, according to CNBC.

The Nasdaq was down by 30.92% this year, with the S&P 500 down 22.98% this year, as of close of business yesterday, according to data from MarketWatch.

“Stocks were overvalued because their nominal price has been fueled by the inflation of the Federal Reserve,” Heritage Foundation economist E.J. Antoni told the Daily Caller News Foundation. “As soon as the Fed took away the punch bowl… what happened? Stocks immediately took a nosedive and are continuing to do so, because the only thing that has been fueling this economic recovery hasn’t been real growth, but again, money creation.”

After wavering early this week as investors awaited the Federal Reserve’s Wednesday announcement of a third interest rate hike in just four months, stocks tumbled, with Goldman Sachs warning clients that investors are preparing for recession and slashing its expectations for the S&P 500 stock index by 16%.

After wavering early this week as investors awaited the Federal Reserve’s Wednesday announcement of a third interest rate hike in just four months, stocks tumbled, with Goldman Sachs warning clients that investors are preparing for recession and slashing its expectations for the S&P 500 stock index by 16%.

“Now we’re faced with the reality of having to do it the hard way, of having to actually grow the economy and not just grow the money supply.” Antoni said.

AUTHOR

JOHN HUGH DEMASTRI

Contributor.

RELATED ARTICLE: Stocks Stay Volatile As Recession Fears Loom

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved. Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org.