Does It Really Matter If Trump Or Clinton Wins? A Recession Is Already On The Horizon

There are always two sides to the argument, especially in economics and politics.

Consider for a moment the likelihood that either Hillary Clinton or Donald Trump will assume the presidency at a time of record stimulus measures, not only from the U.S. Federal Reserve but from central banks across the world. Does this really backstop or prevent any threat to the economy?

Sven Henrich, Northmantrader.com's founder, was a guest on CNBC on Friday and offered the opposing side of the story.

Henrich quickly pointed out that either Clinton or Trump will assume the presidency while corporations are sitting on record-high debt as companies are borrowing more and more money to buy back their own stock and finance pension gaps.

"Companies are really not investing in future expansion, we are seeing negative private investment growth, weak capital investment, and we just saw now August leading indicators down," Henrich said.

Henrich added that consumer confidence fell to its lowest levels since December. Meanwhile, the consumer price index is rising in all the wrong places, namely medical expenses and rent.

Henrich further stated that all of these factors are merely "seeds" being planted and will result into the next recession.

Bottom line, Henrich concluded from a combination of technical and fundamental analysis the markets have an upside potential of just 3 to 6 percent if central banks continue its current policies. On the other hand, the downside potential ranges from as much as 20 to 25 percent.

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