Republican presidential nominee Donald Trump on Tuesday advised American common investors to 'get out' of the stock market the way he did, as he feels euphoria in the market is only driven on account of US Federal Reserve's easy money policies.
"Interest rates are artificially low and the only reason the stock market is where it is because you get free money from US Federal Reserve," said Trump in an interview to FOX Business Network, adding the market would "go great" if he were elected.
When interviewer asked Trump if he would tell the average investor to put his 401(k) in equities, Trump responded, "no, I don't like a lot of things that I see... interest rates are artificially low. If interest rates ever seek a natural level, which obviously would be much higher than they are right now, you have some very scary scenarios out there."
A 401(k) is a retirement savings plan in US sponsored by an employer. It lets employees save and invest a chunk of their salary before taxes are taken out.
Trump also said that he has never been a big investor in the stock market. "I did invest and I got out, and it was actually very good timing," he said.
The Fed has held steady on interest rates since December 2015, when it raised them for the first time in nearly a decade and signalled another four rate increases were in the offing in 2016, which were later reduced to two.
Fed officials are taking stock of the economy's progress in the wake of the Britain's vote in June to leave the European Union, as well as the key US economic data such as jobs and housing sales, before taking any call on reducing interest rates.