David Stockman warns both Trump and Clinton could lead to 25% sell-off

Stockman posits that, under a Clinton administration, official investigations and new hacked email disclosures from Wikileaks will be non-stop. Furthermore, he reasoned that the "house will become a killing field" for anything Clinton is trying to do. Ultimately, Stockman said the Democrat would enter the Oval Office bruised, bloody and all but lacking in legitimacy... "there will be brinkmanship, there will be paralysis. There will be a swarm of house committees doing investigations from all of these wiki leaks!... Therefore, there will be no baton handed off from the Fed to fiscal policy as we slide into recession," he added.

Stockman... said the IRS is the government agency that is the clearest indicator that a storm is brewing over financial markets. "The IRS said that last year revenue was up 1 percent and, in the last quarter, it was down 4 percent," explained Stockman. "And, in the five months since May, payroll withholding was barely keeping even with wage inflations. That means the work hours aren't happening."

... Stockman reasoned that with a paralyzed congress, a soon-to-expire debt ceiling, a powerless central bank and a market that's been flat for 700 days, that the pieces are in place for a crisis.