Buck Brief - Stocks Lose Trillions in Reaction to GOP Wipeout

Buck Sexton (0:00)

So the Democrats won on Tuesday, and it was a disaster for Republicans. And we're already seeing this is likely to be a disaster for the economy as well.

The $2.5 trillion drop off that just happened from the Nasdaq is something that we all have to pay attention to. You might say, oh, I don't invest in stocks, or I'm not into tech or AI, or it doesn't matter. The entire US economy, its future has become directly intertwined with tech, directly intertwined with the future of an expansion of these cutting edge and transformational technologies. Well, Democrats winning, and particularly in Texas, have set people into a little bit of a mini panic, and you couldn't see it any more clearly than what just happened the last 24 hours. $2.5 trillion of wealth, or of, you know, money on the balance sheet, so to speak, gone. So just two days after these midterms. So you had, just to give you a sense of some of the worst days in the Nasdaq's history, this is the worst single day.

In, I'm trying to go back how many decades now.

This is a rough one. And you'd have to go back quite a ways for something like this to happen.

You have a lot of these tech companies that are going down. You might, again, want to wonder why do I care? Because guys, this is how a crash happens.

There has been a massive investment in and speculation as a result of it, massive investment in these tech companies doing the things that we believe that they will do. And this has become essentially the future. This is supposed to change everything. It's supposed to change health care, supposed to change your, become your own personal assistant. Between robots and AI, you're going to see things that look like they were from a sci-fi movie not long ago.

Or else, if we're not going to see that, there's going to be massive sell-offs in some of these places. And that's going to affect very much 401Ks. It's going to affect household wealth. It's going to create issues that reverberate throughout the entire economy. Why is this so concerning? Because the communists just won a huge election. This is all tied in together. And they won in Texas specifically. You have to remember, Texas is now the headquarters of Elon Musk's companies, like Tesla and SpaceX. And there is no doubt in anyone's mind that the Democrats are going to go on a reprisal tour of menace against Elon, against any of these tech entrepreneurs, these tech visionaries, billionaires, whatever you want to call them, you know, Peter Thiel, they're going to be targeting these individuals and specifically their businesses. And it used to be, we could say, in a place like Texas, you could expect from the state government, at least, you would be safe. Now they're safe from the federal government side right now, insofar as Trump is still president. And that's certainly a good thing. But the state of Texas is going to go into this Gina, Gina Hinojosa, or something is her name. I didn't even pay attention to her because I thought there was no chance she would win. Clearly I was wrong. She did win.

Abbott got defeated handily by this woman. And they're going to just do everything that they can to punish the ideological enemies of the left in business. And they might even do something as drastic as stopping data center builds in a place like Texas. Now, this is a sensitive topic and I get it. People are upset about data centers in their neighborhoods. But even more than that, I think there's a recognition that as these things build, this new future of AI that we've been talking about, that has been largely promised to all of us, that it's actually becoming real, the infrastructure is being laid. It's like the tracks of the railroad are going into place, except in this case, it's data centers. And there's a worry about jobs being replaced. That's a real worry. There will be job losses as a result of AI. People should be very honest about this.

There will be people who are much more productive as a result of AI to be sure. And I think that overall for society, there'll be far more wealth creation than wealth destruction. But there will be some dislocations and pain along the way. There's no question about that. But if you let these lunatic Democrats do what they want to do, you could bring about a massive market crash because they can bring all this stuff to a screeching halt in some places now, like Texas, that really matters. You know, you might say, Oh, but Buck, they're in charge in California and Silicon Valley and everything else. Yeah. And the billionaires tax there failed, I might add. Turns out people realize that that was going to just completely further the flight from California that had been going on for a long time.