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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THE TRUTH...

is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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