The wealthiest man in the state of Florida has predicted that the stock market will drop 15 percent if Democrats take control of Congress. Thomas Peterffy, a pioneer of computerized stock trading, states Democrats and their policies are a danger to the economy.
According to Market Watch, the Hungarian-born billionaire, who ranks as the richest person in Florida with a net worth of $25.7 billion, according to Forbes, has made a stock market prediction. Peterffy predicted that the stock market could see a tumble of as much as 15% if the so-called “blue wave” materializes. Even if the Democrats take only the House, the founder of Interactive Brokers said the market could face a 2% or 3% decline in equity values.
“I will be a buyer after the market drops, and I would be a buyer, of course, if the Republicans retain control,” he told CNBC. However, Peterffy anticipates that he and other investors will be more “bullish” if Republican remain in control.
The Democrats did take back the House in last night’s midterm elections, however, Republicans retained control of the Senate. According to CNBC, Republicans managed not only to stop Democrats from netting two GOP-held seats the minority party needed to win control of the chamber but also appeared set to gain seats.
We will soon see if Peterffy’s prediction was accurate. Historically, political gridlock in which the levels of power in Congress and the White House are divided between the parties (and can’t pass laws restricting our freedom), has tended to result in strong gains for United States equities.
Jeremy Siegel, finance professor at the Wharton School at the University of Pennsylvania and a longtime bull, said strong markets followed after midterm elections during the Clinton administration in 1994, where President Bill Clinton’s Democratic Party lost the House and Senate in a political defeat called the “Republican Revolution,” resulting in a net gain of 54 GOP House seats. Democrats under Clinton also lost the 1998 midterms decisively. –Market Watch
It Took 22 Years to Get to This Point
Bird flu has been detected in mammals on the Texas panhandle, including skunks, raccoons, and...
The public's ignorance about food safety and vaccination is now a hindrance to the prevention of...
This article was originally published by Michael Snyder at The Economic Collapse Blog. Consumer...
The United States' ruling class has issued what can only be described as an ultimatum to Russia...
Commenting Policy:
Some comments on this web site are automatically moderated through our Spam protection systems. Please be patient if your comment isn’t immediately available. We’re not trying to censor you, the system just wants to make sure you’re not a robot posting random spam.
This website thrives because of its community. While we support lively debates and understand that people get excited, frustrated or angry at times, we ask that the conversation remain civil. Racism, to include any religious affiliation, will not be tolerated on this site, including the disparagement of people in the comments section.
This is to be expected with Trump as President and the Republicans in control of the Senate.
Probably more like 25-30%.
*snicker*
whatever you say, boss 🙂
What about the guy who forecast a 70% collapse to happen on November 1? Haven’t heard anymore from him.
And what ever happened to Niburu?
Yea, and what ever happened to Po’d Patriot?
He go to the great HVAC convention in the sky?
Yeah, still awaiting predictions from 10 years ago. Searching the archives here is very entertaining sometimes.
I wondered about Po’P… hope he’s ok..
The most dangerous thing to the stock market is what?
Answer: computerized stock trading,
It’s a blatant attempt to manipulate the market using fearmongering. Want to bet which way this guy’s investments actually lean?
meanwhile, the actual meat of the ststement is: “..Even if the Democrats take only the House, the founder of Interactive Brokers said the market could face a 2% or 3% decline in equity values…”
so IF he’s correct, hes saying 2%.
which is to say nothing.
Those near retirement or in retirement need to “stop loss” their stocks and move into bonds incl. high rate muni’s for fixed income. Then get a good nite’s sleep knowing u don’t have to time the mkt.
There is a rumored, plunge protection team (ppt). An equal but opposite counter-force. One that keeps the clockwork wound, one that relieves excess pressure. There are analogous concepts, in electronics engineering. A positive and a negative, a charge, a resistor, and a heatsink, etc, etc. In maths, both sides of the equation are in balance. A karmic law of equivalent exchange.
On good news, from Trump, the markets rose. Fed increased interest rate, and trading dropped.
Mad Maxine is now set to chair the House Financial Services Committee, of which I was aware. She said, “I have not forgotten you foreclosed on “our” ;-)houses…I have not forgotten that you undermined our communities…What I am going to do to you is fair. I’m going to do to you what you did to us.”
Philosophically speaking, I don’t recognize all parties as being equal. I don’t think it *has to work this way, morally.
But, if I was a speculator, I would be looking for the guaranteed payout. You know that some people are definitely going to get subsidized by a 5th Plank lending monopoly, which is definitely insured against losses. People who cannot get evicted, or who cannot get fired, who I would personally love to hate, are just pawns or placeholders, who might be leveraged, shamelessly. Like checkers or chess.
You can probably learn from players, empowered people — no matter how unjustly they are empowered — because, many of their holdings and speculations are in the public record.
“It’s tough to make predictions, especially about the future.” Yogi
The DOW Industrials is up nearly 300% since the GFC bottom in 2009. A 5% drop is nothing.
We’ve heard these predictions since then. Waiting for a collapse is like watching paint dry…except the drying paint is your life slipping by.
Get out of the blue light and into the yellow light and get some dirt under your finger nails.
But alas I cannot. I have chewed my fingernails off worrying about it (sarcasm). Meh, I think I will make a trip to the cabin and do some more long range shooting practice (good for the soul) 🙂
The poorest man in Illinois, me, says there will be a correction in the market of at least 10%, maybe more. Man, am I underpaid or what?
Just like the Agora/Stansbury spam we get every day! The same hysterical ninnies that predicted the Iranian blockade of the Straits of Hormuz on Nov 4th. Our 401k accounts would be decimated this week and gas would be $12/gallon by now. The only escape from starvation and poverty is a $1995.00 subscription to their snoozeletter….