Ralph Schlosstein, co-founder of BlackRock (BLK.US), said that if Trump is elected as President of the United States, it will pose a risk to the U.S. stock market. However, he believes that the possibility of an economic recession next year is small. As long as the economy and corporate profits remain in good condition, the U.S. stock market will continue to rise, and the Fed's first rate cut will also have a stimulating effect on the stock market.

He said that Trump had proposed a 10% tariff on imported products from other countries and a tariff of up to 100% on goods from China, which could push up inflation and hit the stock market. Although the Fed is unlikely to directly respond to Trump's tariffs by raising interest rates, it cannot exclude the possibility of an interest rate hike if inflation eventually soars.

Schlosstein said that U.S. fiscal policy is not sustainable, and both parties currently seem to have little concern about this issue. In particular, Trump's tax reduction policy will push up the deficit and he believes that the global trade war or weakening of the dollar, as well as foreign investors possibly withdrawing from U.S. bonds, could trigger another downgrade of the U.S. sovereign rating, leading to a bad situation and putting pressure on financial markets.