Citi: Trump election could lead to 5 percent drop in S&P
Donald Trump’s election could trigger a 5 percent dip in the Standard & Poor’s 500 index and dismal growth, analysts at Citibank warn.
“A Trump win risks slower growth or recession if trade is restricted and fiscal expansion plans curtailed. Uncertainty alone could hit the economy. Global growth will also be impacted if uncertainty rises, U.S. growth is hit and U.S. financial conditions tighten,” said the analysts.
On the flip side, Citi argued a Clinton victory could leave energy stocks worse off because a Trump administration would likely relax Obama administration environmental regulations.
“A Clinton victory might pressure the oil and gas industry via more restrictions on drilling but that would also support oil prices and help the Energy sector,” wrote the analysts.
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