If Donald Trump is elected to the White House, the Dow Jones industrial average will climb to 25,000 during his first few years in office, Trump senior policy advisor Peter Navarro told CNBC on Monday.
Many Wall Street analysts are predicting a market sell-off if the Republican nominee wins the presidential election. But Navarro said that would just be temporary.
“If there’s a market dip, that’s going to be the greatest buying opportunity of all time,” he said in an interview with “Closing Bell.”
Meanwhile, with a Hillary Clinton win, “the best you’re going to get folks out there is more of the same, which is a paper bull market with a bunch of money coming in from the Fed and central banks propping it up. Trump will give you the robust bull, 25,000 on the Dow in the first term.”
Navarro based his prediction on the fact that Trump will usher in lower taxes, less regulation and will unleash the energy sector and eliminate the trade deficit.
He also argued that net earnings will increase thanks to the cut in the corporate tax from 35 percent to 15 percent.
Tony Fratto, former White House deputy press secretary under President George W. Bush, wouldn’t bank on Dow 25,000 under Trump.
“One thing we know about markets — markets hate volatility,” he told “Closing Bell,” noting that Trump “erratic and volatile” and “would be an erratic president.”
Source: CNBC
