Stock Market Crash to follow Donald Trump Presidency Win?

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Donald Trump Presidency

Financial analysts are fearing a stock market crash and an economic collapse after Donald Trump was elected as the 45th President of the United States.

During the election, as Trump was winning, the Mexican Peso experienced the biggest drop in 20 years. During the same timeline, Australia, Japan and Hong Kong?s markets have taken a downturn.

The Nasdaq and S&P 500 futures dropped by almost 5% overnight before settling at 1% and 1.5% losses for S&P 500 and Nasdaq, respectively. Experts in the finance scene expect the volatility of stocks to continue over the next weeks.

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Gold and US Treasuries have also been in demand for investors who are clamoring for safe havens. The price of Gold has risen by 2% since Tuesday?s elections.

Donald Trump to End Free Trade Agreements?

Money Morning reports that one of the reasons why the market is fearful of Trump?s presidency is that Trump?s campaign focused on ending free trade agreements like the NAFTA. This would mean that the deal between the U.S.?s top three trade partners in Canada and Mexico will be severed.

Trump also vowed to slap tariff on imports, and throw insiders out of Washington. The response for this was three percent down on futures that knocked 750 points off the Dow by 11 p.m.

Analysts say this will get worse before it gets better. Few of them predict a 10% stock market crash over the next few days.

Related: Royal Jordanian Airlines Ad Delivers the Perfect Zing Over Trump Victory

Will Trump Government Make Investments Worse?

With a Trump victory, Republicans will take charge of the presidency and both the houses of Congress, which according to Money Morning ?Chief Investment Strategist Keith Fitz-Gerald, will make investments ?tend to do worse.?

Trump?s protectionist policies could end in 4 million jobs lost in the U.S., according to the Peterson Institute of International Economics.

With all of these, people are still positive that Trump?s presidency and today?s stock market crash are still small compared with the other problems that America have faced including recessions, inflations, and other financial crisis.

Read Also: Donald Trump is 45th US President: How Did He Win Despite Scandals?

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