Look Beyond Soaring Oil Prices! If a Stock Market Crash Takes Shape Under President Donald Trump, These 2 Catalysts Are Likely to Cause It.
The Motley Fool • • business
Key Points:
- During President Trump's first term, the Dow, S&P 500, and Nasdaq Composite rose by 57%, 70%, and 142%, respectively, marking some of the best stock market gains in history despite long-term trends of market rises in most presidencies.
- The stock market currently faces significant headwinds, including sharply rising oil prices due to military actions affecting the Strait of Hormuz, which disrupts about 20% of the world's daily petroleum supply.
- The S&P 500's Shiller Price-to-Earnings (CAPE) Ratio has hovered between 39 and 41 recently, indicating the second priciest market in history and historically correlating with significant market downturns or crashes.
- Increased division within the Federal Open
