US sanctions on Saudi Arabia would roil stocks: David Stockman
David Stockman, the former budget director for President Ronald Reagan, is warning that stocks would take a nosedive if the U.S. imposes sanctions against Saudi Arabia.
“I think the market will take a big spill,” he said during an interview on FOX Business’ “After the Bell” on Thursday.
Secretary of State Mike Pompeo said during his visit to the Kingdom this week, the Saudi Arabian government promised a full investigation into the disappearance and presumed death of writer Jamal Khashoggi. On Thursday, Pompeo said he advised President Trump to give Saudi Arabia “a few more days” to complete the probe.
“They will conduct a complete, thorough investigation of all of the facts surrounding Mr. Khashoggi, and that they will do so in a timely fashion," he told reporters.
President Trump said on “Trish Regan Primetime” that it “would be bad” if Saudi Arabia’s leadership had any knowledge of Khashoggi’s disappearance.
“Turkey and Saudi Arabia are looking at it very strongly and it depends if the king or crown prince knew about it, in my opinion. Number one, what happened? But, whether or not they knew about it. If they knew about it, that would be bad,” he said during an interview on Tuesday.
Stockman also warned that stocks are overvalued and are “looking for a windshield somewhere in the world to splatter on.”