Why Donald Trump Is Praying For A Market Crash

Tyler Durden's picture




 

When it comes to Trump's relentless surge in the polls, one thing is certain: the so-called "pundits", biased from day one, were, are, and will continue to be completely wrong. But as the day approaches when Trump appears set to win the GOP presidential nomination and face off against Hillary, who should one listen to? Well, according to InvesTech's James Stack, with a track record of 86.4%, the market may be an almost flawless arbiter of the election outcome long before November.

Here's why:

Does the stock market affect or predict the election outcome?

 

The old saying that “people vote their pocketbooks” is more accurate than the average political analyst thinks. While Wall Street typically worries about how politics might affect the market, perhaps Presidential candidates should worry about how the stock market might affect their political outcomes.

 

Historically, the market performance in the three months leading up to a Presidential Election has displayed an uncanny ability to forecast who will win the White House… the incumbent party or the challenger. Since 1928, there have been 22 Presidential Elections. In 14 of them, the S&P 500 climbed during the three months preceding election day. The incumbent President or party won in 12 of those 14 instances. However, in 7 of the 8 elections where the S&P 500 fell over that three month period, the incumbent party lost.

 

There are only three exceptions to this correlation: 1956, 1968, and 1980. Statistically, the market has an 86.4% success rate in forecasting the election!

 

This relationship occurs because the stock market reflects the economic outlook in the weeks leading up to the election. A rising stock market indicates an improving economy, which means rising confidence and increases the chances of the incumbent party’s re-election. Therefore, your time might be better spent from August through October watching the stock market rather than the debates if you want to know who will be President for the next four years.

Here the reflexive question emerges: does the market predict the election outcome, or does the move in the market - whether by design or by chance - predetermine the election outcome?

Now if only Donald Trump, or his backers for whatever reasons they may have, could orchestrate a market crash...

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Fri, 01/15/2016 - 20:27 | 7053697 the6thBook
the6thBook's picture

They are already trying to spin it on marketwatch as the market "afraid" of Trump's tarrifs.  

 

Fri, 01/15/2016 - 20:27 | 7053702 Jurgster
Jurgster's picture

They can all do the kabuki. In the end, JEB=CIA=Next POTUS >> http://bit.ly/1NBoR7S

Fri, 01/15/2016 - 20:33 | 7053730 Squid-puppets a...
Squid-puppets a-go-go's picture

there you have it folks. Only 13.6% of americans will vote against the interest of their own hip pockets, out of principle for their vision of a better America

Fri, 01/15/2016 - 20:36 | 7053739 red red wine
red red wine's picture

Gonna see a False Flag....WW#3....Obama gonna declare a executive law....his 3rd term is a cinch.

Fri, 01/15/2016 - 20:40 | 7053757 JuliaS
JuliaS's picture

The puppets are interchangeable. No need to keep the same one in place for 3 terms when they're all carbon copies of eachother.

Fri, 01/15/2016 - 20:42 | 7053768 LowerSlowerDela...
LowerSlowerDelaware_LSD's picture

"Why Donald Trump Is Praying For A Market Crash"

Too late.  It's already here.

Fri, 01/15/2016 - 20:48 | 7053798 JackT
JackT's picture

What happens if there isn't a market left 3 months before elections?

Fri, 01/15/2016 - 20:49 | 7053805 Save_America1st
Fri, 01/15/2016 - 20:53 | 7053818 tmosley
tmosley's picture

Did you know that the stock market existed before 1928!?

So where's the rest of the data?

Sat, 01/16/2016 - 01:10 | 7054363 Mr. Universe
Mr. Universe's picture

I drove through Berkeley today and I can tell you there were few Hillary stickers on the cars anymore. They all now "Feel the Bern".

Sat, 01/16/2016 - 04:55 | 7054530 StychoKiller
StychoKiller's picture

Why not, didn't Bernie "promise" free tuition??

Sat, 01/16/2016 - 05:37 | 7054557 KesselRunin12Parsecs
KesselRunin12Parsecs's picture

Would Hilary backers be known as 'backSTERS'?. Just wonderin'

Sat, 01/16/2016 - 05:33 | 7054553 dreadnaught
dreadnaught's picture

good, because Hillary was taking students/young people, women, minorities and Gays for granted

Sat, 01/16/2016 - 13:17 | 7055465 buyingsterling
buyingsterling's picture

She's busy in the bathroom. Alone. Talking to Eleanor.

Bill in 2012: “I know that because, as all of you famously learned when I served as president, my wife, now the secretary of State, was known to commune with Eleanor on a regular basis,” he said.  “And so she called me last night on her way home from Peru to remind me to say that.  That Eleanor had talked to her and reminded her that I should say that.”

Schizophrenia and lavarephobia

http://trumpcampaignanalysis.blogspot.com/2016/01/hillarys-mental-illnes...

Sat, 01/16/2016 - 10:54 | 7055037 Nobody For President
Nobody For President's picture

Mr universe - using Berkeley as an example of anything other than far, far left is a poor idea. I went to grad school there in the early 60's (lot's of dope before it was really popular) and worked there in the late 60's (People's Park) and moved to the country for good. Have called it Busserkely ever since.

That place is baqsicallly not for normal people, and it is proud of it.

Fri, 01/15/2016 - 21:30 | 7053913 RiverRoad
RiverRoad's picture

Jack T:

Trump definitely gets it.

Sat, 01/16/2016 - 11:07 | 7055082 caconhma
caconhma's picture

Trump will get nothing unless his computer supporters will do in the real world something to advance his chances. Otherwise, it will be either Hitlery or Bush!

Sat, 01/16/2016 - 00:41 | 7054322 Max Cynical
Max Cynical's picture

Since the "market" is really a rigged casino, this analysis seems pointless.

The market will be whatever the FED can conjure up before the next election.

Sat, 01/16/2016 - 06:22 | 7054594 DownWithYogaPants
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This article could be boiled down to:  "Federal Reserve chooses the next president 86% of the time"

Sat, 01/16/2016 - 12:10 | 7055258 The Saint
The Saint's picture

It's the market forcasted economic crash that will insure a GOP president.  With no FED QE support there is nothing holding up the market or the economy that Obama policy/regulations have been battering.

Fri, 01/15/2016 - 20:48 | 7053775 Save_America1st
Save_America1st's picture

sheep-tards, ballot rigging, Marxists promising shit to the Free Shit Army, and the GOP pushing McCain/Palin 2008 = CHECK and MATE, bitchez!!!

hardly had much to do w/ the market.  Sheep-tards don't have a fucking clue about the "market" or what it means (as if there really is a free market anymore). They have no clue about the Fed-Res, and all the corruption.

They wanted free shit.  That's the cycle we're in these days.  Or "the Fourth Turning" (Strauss and Howe)...the Crisis Turning/cycle.

It's the cycles of the Saeculum that most people can't see but we still follow it and it has to have it's turn in our lifetimes before we get out of this and move on to the next cycle or "Turning".

The Four Turnings:   http://www.lifecourse.com/about/method/the-four-turnings.html

 

 

Sat, 01/16/2016 - 00:18 | 7054274 daveO
daveO's picture

I'm leaning toward Hussein resigning early and Biden/Wookie for the rigged win. This idea came up when I started reading MSM articles saying Hussein planned on staying around DC instead of going back to Hawaii.

Sat, 01/16/2016 - 12:13 | 7055268 The Saint
The Saint's picture

He wants to head the U.N. so the American taxpayer can continue to pay for his annual $10 million Christmas vacations to Hawaii.  Who would want to give up that perk?

Sat, 01/16/2016 - 09:31 | 7054850 FlacoGee
FlacoGee's picture

There is absolutely a chance Obama does not leave office.

What I am most interested in will be the response of the US populace.

There is a part of me that believes the populace will just accept it, try the courts route, and let it drag on for years while he remains president.

Far fetched?   Not really.

 

 

Sat, 01/16/2016 - 10:28 | 7054981 roadhazard
roadhazard's picture

I thought the same thing about President Cheney.

Sat, 01/16/2016 - 12:17 | 7055277 The Saint
The Saint's picture

I'm sure he is weighing a reason to declare Martial Law this fall and suspend the election process thus remaining in office.  I don't know if he has the guts to do it though being the coward at heart that he is.

Fri, 01/15/2016 - 20:59 | 7053845 Fullthrottle
Fullthrottle's picture

Jeb is Toast, Donors are already starting to jump ship. Bush 43 was all we could take, third times a DUD. 

Fri, 01/15/2016 - 21:07 | 7053863 Pheonyte
Pheonyte's picture

With any luck this will be the year both the Clinton and Bush machines go up in flames.

Sat, 01/16/2016 - 06:24 | 7054597 DownWithYogaPants
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We've already seen the 3rd Bush presidency.  Seriously for all the difference there was between the two Barry Obamao was the 3rd Bush.  Perhaps you meant "4th Bush is a dud"

Fri, 01/15/2016 - 20:39 | 7053756 Mr Pink
Mr Pink's picture

I'm 87% sure the incumbent isn't winning this year

Fri, 01/15/2016 - 20:58 | 7053843 CHoward
CHoward's picture

I'm 100% sure he won't be winning any election this year but I'm not so sure the SOB won't do something to extend his "stay" beyond Jan 20, 2017. 

Sat, 01/16/2016 - 00:21 | 7054290 daveO
daveO's picture

He said, ''Joe don't waste your time and money running for the office. We're going to fix it so you can just waltz right in''.

Sat, 01/16/2016 - 01:50 | 7054401 zhandax
zhandax's picture

I don't suppose he is planning to eat bad oysters?

Sat, 01/16/2016 - 06:25 | 7054600 DownWithYogaPants
DownWithYogaPants's picture

This is a reference to what?

Sat, 01/16/2016 - 13:19 | 7055471 zhandax
zhandax's picture

Wishful thinking

Fri, 01/15/2016 - 21:06 | 7053860 nmewn
nmewn's picture

I'm 100% sure.

Sat, 01/16/2016 - 12:19 | 7055283 The Saint
The Saint's picture

Just like I'm 93% sure the U.S. stock market won't crash on Monday.

Sat, 01/16/2016 - 14:35 | 7055682 Vendetta
Vendetta's picture

I'm 100% sure he will be winning when he gets out of office to go collect his interminable $250k a pop speeches for his payola favors-paid-in-full debt collection rounds like the last 4 presidents have done.

Fri, 01/15/2016 - 21:32 | 7053906 RiverRoad
RiverRoad's picture

"It's the economy, stupid." 

       Slick Willy Clinton

 

Trump gets elected.

Sat, 01/16/2016 - 10:00 | 7054909 Felix da Kat
Felix da Kat's picture

Trump needs no such prayer.

Fri, 01/15/2016 - 20:28 | 7053701 Jurgster
Jurgster's picture

Won'd do him no good. Jeb, next Potus.

Fri, 01/15/2016 - 20:29 | 7053712 Soul Glow
Soul Glow's picture

I'm writing in Tyler Durden.

Fri, 01/15/2016 - 20:58 | 7053842 Ness.
Ness.'s picture

I'm writing in Deez Nuts.

Sat, 01/16/2016 - 05:36 | 7054555 KesselRunin12Parsecs
KesselRunin12Parsecs's picture

I'm writing in Long Soup Line (I'm standing in one too)

Fri, 01/15/2016 - 20:32 | 7053728 stant
stant's picture

Trumps Gona win

Fri, 01/15/2016 - 20:40 | 7053758 Shad_ow
Shad_ow's picture

...and we are all gonna lose.

Fri, 01/15/2016 - 20:50 | 7053806 Coletrane
Coletrane's picture

shut up jeb

Sat, 01/16/2016 - 09:18 | 7054828 corporatewhore
corporatewhore's picture

has anyone else fouond jeb! to be the most annoying bitchy candidate currently running?  He just can't get over the fact that he was supposed to be the nominee and not have any challengers.  the lindsay graham endorsement was a joke.

Fri, 01/15/2016 - 20:51 | 7053809 Thick Willy
Thick Willy's picture

I'm gonna join Trump's deportation force and throw Mexicans over the wall.  I hope we get to wear brown shirts.

Not even kidding.

Fri, 01/15/2016 - 20:55 | 7053825 FredFlintstone
FredFlintstone's picture

Catapults

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