Donald Trump is certain: If he is re-elected as US President, there will be a new boom on Wall Street. If not, the big crash will come.
During his visit to India, US President Donald Trump placed the stock exchange situation at the center of the presidential election campaign. He told business officials that if he won the election, stock prices would go up. “If I don’t win, you will see a stock market crash like never before.”
The sharp drop in prices on Monday did not worry him, they were due to the effects of the corona virus. “But the US is in dazzling shape to deal with the problems,” Trump said. His Chinese counterpart Xi Jinping is working hard to solve the problem. “I think the problem will be brought under control”.
The stock exchanges have long played a central role in Trump’s comeback campaign. Since Trump took office in January 2017, the S&P 500, which includes the country’s 500 largest companies, has grown by 43 percent. Millions of Americans with pension savings plans are doing better than ever, he bragged recently in his speech on the state of the nation. They could look forward to an increase in the value of their savings “of 60, 70, 80, 90 and even 100 percent”. As usual, Trump’s numbers were out of thin air.
In addition, most people do not benefit directly from the stock market boom. Around half of Americans hold securities in their custody account or in their retirement fund. But according to a study by the economics professor Edward Wolff from 2016, the top ten percent of the population own 84 percent of all shares. Another ten percent hold a share of 9.3 percent. The remaining 80 percent of Americans share 6.7 percent of the stock. For most households, an increase in the share price is therefore “fairly insignificant for their well-being,” said Wolff.
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