Donald Trump is suggesting that overvalued tech stocks could cause another stock market crash…
In an interview with Reuters on May 18, Trump said that some tech companies are valued at billions of dollars — but have never made any money.
"You have a stock market that is very strange," he said in the interview.
Trump suggested the stock market today could be in a situation like it was nine years ago (right before the stock market crash leading up to the Great Recession).
That was when the S&P 500 lost nearly 50% of its value and the Dow Jones Industrial Average fell 20% from its October high of 14,015.
Trump isn't the first billionaire to warn against overvalued tech companies… Microsoft Corp. (Nasdaq: MSFT) co-founder Bill Gates and venture capitalist and entrepreneur Mark Cuban have criticized what they call unicorns – private companies with weak fundamentals valued at over $1 billion, according toGeekWire.
Cuban also cited another reason for a stock market crash: Trump himself. Cuban told CNN on Monday he thinks with "100% certainty" that Trump will cause a big correction in the markets.
TO READ MORE: http://moneymorning.com/2016/05/20/donald-trump-warns-a-stock-market-crash-is-coming/
By CAMERON SAUCIER, Associate Editor, Money Morning • May 20, 2016
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