Here comes a 20% stock market plunge if Trump and Democrats don’t agree on trillions more in COVID-19 stimulus
Add the potential of not getting another massive new fiscal stimulus plan as beginning to weigh on the minds of otherwise exuberant investors.
“I think you are looking at a 10% to 15% range minimum [if there isn’t a new stimulus plan],” warned EvercoreISI senior managing director Dennis DeBusschere on Yahoo Finance’s The First Trade. “And then from there it’s going to be about your expectation for the policy response. So you probably go down 10% to 15%, and then we’ll all wait around to see if that 10% to 15% causes the political apparatus to get moving quickly. And if you ultimately get nothing, by the way, you know it’s a down 20%. And you know, we’ll reassess from there.”
In March, lawmakers passed the $2 trillion Coronavirus Aid, Relief and Economic Security Act (CARES). It surpassed the $700 billion bailout package handed out to Wall Street during the