- Dow Jones Industrial Average (DJIA) futures were flat on Tuesday after painful start to December trading.
- Yet another fund manager stoked fear over the possibility of a Democratic White House in 2020.
- Steven Gidumal warned of 50% sell-off if a socialist candidate is elected.
Dow (DJIA) futures contracts traded cautiously higher before the bell on Tuesday. It comes after a day of heavy selling that saw 200 points wiped off the stock market index.
Traders are rattled by fears of manufacturing slowdown, recession, and the never-ending trade war with China. But fund manager Steven Gidumal threw another warning sign into the mix: the prospect of a ‘socialist’ White House in 2020.
If a socialist is elected, the market will sell off BIG… Pick a socialist – Bernie, Liz, Pete. etc. and the market would sell off.
Gidumal is, of course, talking about Democratic candidates Bernie Sanders, Elizabeth Warren, and Pete Buttigieg. He went on to quantify the sell-off at 30-50% if one of the left-leaning candidates took the White House from Trump.
Dow futures flat after brutal December sell-off
Dow futures contracts struggled for traction on Tuesday morning, trading almost completely flat in the early hours. Traders are still dusting themselves off after a brutal 200 point massacre on Monday, triggered by weak manufacturing data and Trump’s tariff threat on Brazil and Argentina.
Is Wall Street scared of a Democratic president?
Steven Gidumal isn’t the first Wall Street veteran to spread fear of a Democratic White House. Billionaire Leon Cooperman has been the most vocal on the topic, singling out Elizabeth Warren as a threat to the Dow and S&P 500.
They won’t open the stock market if Elizabeth Warren is the next president.
Hedge fund manager Marc Lasry joined the chorus of…