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Fox Business Network host Stuart Varney predicted that the stock market will “go straight down” if former Vice President Joe Biden wins the 2020 presidential election.
Varney weighed in on “Fox & Friends” Monday about President Trump’s comments about the economy and warned of big market losses in the event of a Biden victory in November. He forewarned about the impact on the stock market and the more than 100 million Americans who have retirement funds connected to it, if people begin to think the presumptive Democratic presidential nominee will win.
(Source: Fox News)
“We are coming back and we’re coming back at a level that nobody would have thought possible,” Trump told Fox News’ Chris Wallace in an interview that aired Sunday.
“A gauge, whether you like it or not, the stock market. The stock market, NASDAQ hit its all time high two weeks ago and it’s beaten it 14 different times. We’re going to have a stock market, perhaps, on November 3rd, it’s the highest in history,” he predicted.
“I’m going to take the other side of this just for one moment,” Varney said on Monday.
“Let’s suppose that President Trump loses. If that happens, in my opinion, the stock market goes straight down, a major loss for the market if Joe Biden wins,” he added. “And if he looks like he is going to win before November the 3rd, people will start unloading their stock holdings.”
“If you look like Biden wins, you know that a massive tax increase is coming for both businesses and individuals. Estate taxes go up. Profit taxes go up. All across the boar,d taxes go up. That will inevitably slow the economy and bring the stock market down,” Varney predicted.
“I’m saying that if Biden is a winner, especially if he picks Elizabeth Warren as his vice president, watch out below, look out below because this market is going south,” he continued.
“Now, the other side of the coin is what the president was saying. You can have a rip-roaring stock market rally if it looks like we are going to continue his policies of cutting taxes and cutting regulation,” he said.
“In short, there is election risk built in to this election and this market. A Biden win puts the market down, a Trump win puts the market up, which side are you on?” Varney said.
Speaking on the results of recent polling that showed more voters saying they would trust Biden in handling the crisis, Varney noted that the latest numbers could be the result of the economy not recovering as quickly as predicted.
“It could be some of the change in the stats there about how people trust the president on the economy or trust Joe Biden on the economy, that could have something to do with this recovery from the dire depths that we were in in the economy,” he said. “But, now, we’re beginning to slow that recovery a little bit.”
“You have got a slowdown in this rapid recovery and that’s maybe affecting the polls. It’s not good news any way you slice it because we really do want a rip roaring economy, and the fact that it’s slowing a little bit, just a little bit, not good news for the president and not good news for investors or for the economy,” Varney added.
The host of “Varney & Co.” reiterated his points in his latest “My Take” segment, warning about the “commanding lead” Biden has over Trump in some polls.
“This is something that anyone with a few bucks in the market has to think about,” he said. “What happens to your 401(k) or your IRA if Joe Biden wins? I have to believe that if a Biden win looks likely, the selling will begin way before the election itself.”
“Raise the corporate tax rate from 21 percent to 28 percent. Raise the top tax rate from 37 percent to 39.6 percent. Raise capital gains taxes, raise estate taxes,” he added. “Bundle it all up and you’ve got a complete reversal of the tax-cutting policies that produced the huge 8,000-point rally for the Dow since Donald Trump became president.”
Varney also doubled down on the alert about Biden’s choice of running mate, especially if that happens to be anti-Wall Street Sen. Elizabeth Warren.
“Sen. Elizabeth Warren is said to be a front runner,” he said. “She is the scourge of the banks. The scourge of Wall Street. The pundits say she would be the most influential veep in history. Would you own stock in a bank or any other financial company if she were just a heartbeat away from the oval office?”
“Ask yourself: what will you do with your money if it looks like we’re heading for a Biden/Warren presidency?” Varney said. “It’s a dilemma. It’s called ‘election risk.’”