If the “sharks” on ABC’s Shark Tank talked politics on the show, they’d find more disagreement there than they do on their business deals.Mark Cuban, the wealthiest man on the show publicly backed Hillary Clinton. In pure Trump-fashion, he trolled the then-Republican nominee on Twitter, culminating in a $10 million pitch to Trump to agree to a four-hour long interview. Trump didn’t respond, so it appears on that deal, he’s out.
Cuban hounded Trump on substance, predicting that “in the event that Trump wins, I have no doubt in my mind that the market tanks.” This was the general consensus among the financial elite.Citigroup predicted a three to five percent market selloff in the event of a Trump victory, while Barclays predicted an 11 to 13 percent drop.
Taking the opposite position was Kevin O’Leary, often known as “Mr. Wonderful” (for being anything but) on the show. Trump will win and the market will soar, according to him.
So who was right? Anyone with an IRA or 401k already knows, but here are the facts.
As Circa reported: Donald Trump hasn’t even taken office yet, but the president-elect has probably had an impact on your money.In the weeks since the American presidential election, the U.S. stock market has rallied some 3 percent, global markets have seen some gains and your 401(k) is probably looking pretty good.
The Dow Jones surged past the 19,000 milestone for the first time in its 120-year history in a post-election rally.
Below is charted the performance of the three major U.S. stock market indexes over the past three months, with the date of the election noted on the graphs.
The VIX index (which measures market volatility, and is also known as the “fear index”) also fell following the election, which was surprising considering the unexpected outcome.
Who would’ve thought that those who got everything wrong about the election would also be wrong about its consequences?
[Note: This post was authored by Matt Palumbo. Follow him on Twitter @MattPalumbo12]