{"id":55207,"date":"2016-11-06T11:04:54","date_gmt":"2016-11-06T15:04:54","guid":{"rendered":"https:\/\/stateofthenation2012.com\/?p=55207"},"modified":"2016-11-06T11:08:58","modified_gmt":"2016-11-06T15:08:58","slug":"david-stockman-warns-both-trump-and-clinton-could-lead-to-25-sell-off","status":"publish","type":"post","link":"https:\/\/stateofthenation2012.com\/?p=55207","title":{"rendered":"David Stockman warns both Trump and Clinton could lead to 25% sell-off"},"content":{"rendered":"<p><!--more--><br \/>\n<iframe loading=\"lazy\" src=\"http:\/\/player.cnbc.com\/p\/gZWlPC\/cnbc_global?playertype=synd&amp;byGuid=3000565081&amp;size=530_298\" width=\"530\" height=\"298\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h1>Stockman: Sell Everything!<\/h1>\n<p>CNBC<\/p>\n<p>David Stockman, the man widely credited as the &#8220;Father of Reaganomics&#8221;, delivered an alarming message to investors.<\/p>\n<p>Sell everything!<\/p>\n<p>&#8220;The markets are hideously inflated,&#8221; warned Stockman on <a href=\"http:\/\/www.cnbc.com\/fast-money\/\" target=\"_blank\">CNBC&#8217;s &#8220;Fast Money&#8221;<\/a> this week. The former Director of the Office of Management and Budget under President Ronald Reagan urged investors to dump stocks and bonds ahead of the dangers that both <a href=\"http:\/\/www.cnbc.com\/donald-trump\/\" target=\"_blank\">Donald Trump<\/a> and <a href=\"http:\/\/www.cnbc.com\/hillary-clinton\/\" target=\"_blank\">Hillary Clinton<\/a> pose to markets if either is elected as President.<\/p>\n<div id=\"inline_movable_ad\"><\/div>\n<p>&#8220;If you don&#8217;t sell before the election, certainly do it afterwards. Government is going to be totally paralyzed regardless of who wins,&#8221; he said. &#8220;There could be a 25 percent draw down on markets.&#8221;<\/p>\n<p>Stockman posits that, under a Clinton administration, official investigations and <a href=\"http:\/\/www.cnbc.com\/2016\/11\/04\/giuliani-suggests-he-knew-about-fbis-new-clinton-review-before-it-was-public.html\" target=\"_blank\">new hacked email disclosures<\/a> from Wikileaks will be non-stop. Furthermore, he reasoned that the &#8220;house will become a killing field&#8221; for anything Clinton is trying to do. Ultimately, Stockman said the Democrat would enter the Oval Office bruised, bloody and all but lacking in legitimacy.<\/p>\n<p>&#8220;For six months, or even longer, there will acrimony, there will be brinkmanship, there will be paralysis. There will be a swarm of house committees doing investigations from all of these wiki leaks!&#8221; Stockman said of Clinton&#8217;s hypothetical early days in the White House.<\/p>\n<p>&#8220;Therefore, there will be no baton handed off from the <a href=\"http:\/\/www.cnbc.com\/federal-reserve\/\" target=\"_blank\">Fed<\/a> to fiscal policy as we slide into recession,&#8221; he added.<\/p>\n<p>Stockman, who spent twenty years on Wall Street with Salomon Brothers and Blackstone and served as a Congressman for Michigan, said the IRS is the government agency that is the clearest indicator that a storm is brewing over financial markets.<\/p>\n<p>&#8220;The IRS said that last year revenue was up 1 percent and, in the last quarter, it was down 4 percent,&#8221; explained Stockman. &#8220;And, in the five months since May, payroll withholding was barely keeping even with wage inflations. That means the work hours aren&#8217;t happening.&#8221;<\/p>\n<p>From here, Stockman reasoned that with a paralyzed congress, a soon-to-expire debt ceiling, a powerless central bank and a market that&#8217;s been flat for 700 days, that the pieces are in place for a crisis.<\/p>\n<p>&#8220;We&#8217;re in the same place today as we were in December of 2014,&#8221; explained Stockman. &#8220;There&#8217;s massive risk. So what&#8217;s the possible reward?&#8221;<\/p>\n<p>Indeed, the <a class=\"inline_quotes\" href=\"http:\/\/data.cnbc.com\/quotes\/.SPX\" target=\"_blank\" data-gdsid=\"593933\" data-inline-quote-symbol=\".SPX\">S&amp;P 500 Index<\/a> has gained just over 1 percent in nearly two years while the <a class=\"inline_quotes\" href=\"http:\/\/data.cnbc.com\/quotes\/.DJITR\" target=\"_blank\" data-gdsid=\"600031\" data-inline-quote-symbol=\".DJITR\">Dow Jones Industrial Average<\/a> has gained just .70 percent.<\/p>\n<p>___<br \/>\n<a href=\"http:\/\/www.cnbc.com\/2016\/11\/04\/david-stockman-warns-both-trump-and-clinton-could-lead-to-25-sell-off.html\">http:\/\/www.cnbc.com\/2016\/11\/04\/david-stockman-warns-both-trump-and-clinton-could-lead-to-25-sell-off.html<\/a><\/p>\n<p><!--more--><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-55207","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts\/55207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=55207"}],"version-history":[{"count":0,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts\/55207\/revisions"}],"wp:attachment":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=55207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=55207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=55207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}