Mark Cuban: If Donald Trump Wins the Markets Will Tank
During an interview on the FOX Business Network’s Cavuto: Coast to Coast, Dallas Mavericks owner Mark Cuban discussed how the election impacts his investment decisions.
“I think there are so many external global influences on our market. You know what money comes here when there’s uncertainty overseas. What money goes into treasuries and where does it go if rates go higher or lower -- and then there’s the uncertainty of the election… I have my Trump hedge on. In the event Donald wins, I have no doubt in my mind that the market tanks. And so, I literally have put on more than 100% hedge… that I’ll put on stronger if it looks like there’s a better chance as we go forward,†he told Neil Cavuto.
The “Shark Tank†investor, who is worth an estimated $2.6 billion according to Forbes, said Donald Trump’s policies create uncertainty within the markets.
“Right now, all we know a little bit about is immigration which tends to change on a day-to-day basis and we know he is going to reduce taxes significantly. When you reduce taxes significantly there’s a timeline involved. Everybody is going to put off selling and doing anything until next year because of the drop in tax rates, if he’s able to get it passed, and because of that, you’re going to see a huge sell off,†he said.
He added, “Then on the global peace basis all he has to do is say the wrong thing one time and there’s no good that will come of it.â€