Be Very Scared for Your 401(k) Right Now

The stock markets tank as Trump’s lead in the presidential race grows.


As Donald Trump’s lead in the presidential race held steady late into election night, global markets reacted just as financial analysts had predicted they would: with a severe downward slide. The dollar, the Mexican peso, and crude oil all fell drastically, and market indexes like the Dow, the Nasdaq, and the S&P 500—which provide a summary of a market’s health by tracking top stocks—also plummeted.

Investors have long been concerned by what they see as Trump’s volatility on key issues that could affect trade and the economy. Trump has threatened to take apart trade agreements like the North American Free Trade Agreement (NAFTA) and the Trans-Pacific Partnership and to impose new tariffs on imports—all actions that could slow down economic growth around the world.

In a New York Times op-ed published early Wednesday morning, with the election still not decided, economist Paul Krugman went so far as to predict that, should Trump be elected president, the global economy could fall into a recession.

“Under any circumstances, putting an irresponsible, ignorant man who takes his advice from all the wrong people in charge of the nation with the world’s most important economy would be very bad news. What makes it especially bad right now, however, is the fundamentally fragile state much of the world is still in, 8 years after the great financial crisis,” Krugman wrote. “If the question is when markets will recover, a first-pass answer is never.”

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IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

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