US. stock markets will fall "substantially" as soon as it becomes clear Elizabeth Warren is nominated for the Democratic Party's presidential candidate for the 2020 election, an investment expert from bond giant Pimco said Tuesday.
was president or not, whether she was the Democratic candidate, the stock market will adapt – probably downward – in a material way as soon as it became clear, absolutely. There's no question about that, "John Studzinski, Pimco's CEO and vice president, told CNBC's" Squawk Box "at the East Tech West Conference in Nansha District, Guangzhou City, China.
Studzinski did not quantify his prediction about a stock market fall, but his forecast differs from most others because it centered on a Warren candidacy ̵
But like others, Pimco executive investors said that US President Donald Trump generally believes to be pro-business, which "added a lot of confidence" to the financial markets. to Trump remains "in a strong political position today," he said.
Warren, a leading runner-up to the Democratic president's no. mining, has made the government in the exaggeration of the richest Americans and the largest American companies. the centerpiece of her campaign. Several well-known business executives and investors have criticized her plans, saying that the Warren presidency would hurt the financial markets and the economy.
But Studzinski said that if Warren wins the Democratic nomination, she can adjust her policy to appeal to "centrist" voters to have a better chance of beating Trump. Warren, a Massachusetts senator, is considered by many to be leftist.
"My theory is: If she gets a nomination, markets will be nervous about it," he told CNBC's Geoff Cutmore in a conversation about global investment prospects at the conference. "I will also say that she could very well move to the center of many of her policy areas if she gets the nomination just to contest and get that kind of central part of the American Democratic Party."