Stocks have ‘at least 10% to 15%’ further to fall: Scaramucci

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Anthony Scaramucci, former director of communications for the White House and founder of SkyBridge Capital LLC, speaks during the Skybridge Alternatives (SALT) conference in Las Vegas, Nevada, U.S., on Wednesday, May 8, 2019.

Joe Buglewicz | Bloomberg | Getty Images

The Dow Jones Industrial Average is down 32.81% from the beginning of the year, while the S&P 500 index has fallen 28.66% over the same period.

“We’re in a protracted bear market,” said Scaramucci, who is founder and managing partner at investing firm SkyBridge. “I think there’s at least 10% to 15% more to go in equity prices here.”

In the short term, however, he said he is optimistic because of the expectation that Congress will approve economic stimulus for the country. 

On Sunday evening, a huge funding package failed to get enough votes in a key Senate procedural vote.

“I predict that they will get a deal done. They know how sensitive this is for markets,” Scaramucci said. “It may come before the (market) opening, but if it doesn’t, my guess is it will come after tomorrow’s close.”

He said the stimulus will send a message to U.S. citizens that the government is there for them “in a time of crisis like this.”

“I’ve told people,  this is so much worse than the global financial crisis. It’s literally 9/11 plus the global financial crisis,” he added. 

Impact on 2020 US elections

Scaramucci, who is a frequent critic of U.S. President Donald Trump, also weighed in on the impact of the coronavirus outbreak on Trump’s reelection chances.

“If he executes on the stimulus, I think he comes out of this very strong,” he said. “I think people will recognize that he’s going into the recession because of the war on the virus.”

Trump has been criticized for the way the administration responded to the outbreak.

“I think it’s still a toss-up, going into November,” said Scaramucci, noting that the Democratic base and many independents are “fired up and angry” at Trump.

He previously said Trump would lose the election. “Now I think it’s probably even money.”

—CNBC’s Lauren Hirsch, Leslie Josephs, Kevin Stankiewicz and Elliot Smith contributed to this report.

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