(Bloomberg) — A presidential matchup between Republican Donald Trump and Democrat Hillary Clinton could sap a full percentage point from anticipated growth in the gross domestic product, the chief investment officer of the second-largest U.S. pension fund said.
"Can you imagine a whole year of Trump and Hillary going at each other?" Christopher Ailman, who manages the California State Teachers' Retirement System's $184 billion portfolio, said Tuesday on Bloomberg Television. "It's going to be a drag on the economy."
Ailman said 70 percent of the U.S. economy is based on consumer sales, and a divisive presidential campaign is likely to depress consumer confidence. He didn't comment on Clinton but said Trump's statements "reverberate" across the global economy. The Republican real-estate mogul, who leads in all national polls for his party's nomination, this week called for a ban on Muslims entering the U.S.
