Former President Donald Trump had a knack for making bold predictions that would initially be dismissed as wild and implausible but would later be proven as quite accurate and prescient.
The latest example of such is a claim Trump made during a 2020 presidential debate that the stock market would “crash” if President Joe Biden was elected instead of him, The Western Journal reported.
And, while his timing may have been off by about a year, Trump has now been proven correct after the markets took a serious tumble in value over the past several weeks.
“Stock market will crash” if Biden elected
It was during the NBC News-hosted presidential debate on Oct. 23, 2020, that then-President Trump cited top financial analyst assessments and said, “They say the stock market will boom if I’m elected. If he’s elected, the stock market will crash.”
After a dismissive retort from then-candidate Biden about the supposed unimportance of the stock market to average Americans, Trump added that, under his leadership, “401(k)s are through the roof, their stocks are through the roof,” in reference to the retirement accounts held by many average American workers.
Nearly everything gained has now vanished
The Western Journal noted that when former President Trump was first elected in November 2016, the Dow Jones Industrial Average immediately reacted positively and jumped several hundred points to 18,600 and then continued to rise throughout his tenure in office, closing out approximately 40 percent higher at 30,900 when he left office on January 20, 2021.
That is when President Biden entered office and began to implement his policies that were the reverse of what Trump had done, and though Biden initially enjoyed some continued growth of the stock market due to the lingering success of Trump’s efforts — the market reached a high of 36,500 at one point — the impact of Biden’s policies eventually had the predicted negative effect.
Following several tumultuous weeks of market sell-offs, as of Thursday, the DJIA stood at 31,200, a mere 300 points or 1 percent higher than when Biden had first entered office.
Comparison of first-year stock market performance under Biden and Trump
In January, obviously prior to this most recent dramatic decline in the stock market — and with it, people’s 401(k)s — Fox Business had compared Biden’s and Trump’s first years in office in terms of the performance of the top three markets for stocks: the DJIA, the Nasdaq Composite, and the S&P 500.
Under Trump, the Dow rose by 31 percent in his first year, compared to just 11.3 percent for Biden’s first year — and as noted, even those gains under Biden have since been essentially erased.
As for the tech-centric Nasdaq, it increased by 32 percent during Trump’s first year while gaining just 5.2 percent under Biden, and the S&P 500 had gained nearly 24 percent in value for Trump’s first year in office but just 16.4 percent added value during Biden’s first year.