Where have I heard that before?
In 2012, Faber predicted that the S&P 500 index would fall at least 20% within 6–9 months following the re-election of Barack Obama. As it turned out the stock market went up 235% under Obama's eight years.
Never use politics as a guide to invest in the stock market. I also thought the market would tank under Obama but nevertheless followed my plan and remained invested throughout the Obama years and was rewarded for it.
Having said that some event or events could trigger a crash of 50% in the market at any time. One has to be prepared for it. If one cannot stomach that they should not invest because there is always risk ... and reward.
Markets anticipate forseeable events. The Obama crash occurred from Jan 2008 through Dec 2008.
Overlay a chart of the S&P 500 with that of the Iowa electronic market for the likelihood of an Obama win. Almost perfect inverse correlation.
Sell on the rumor, buy on the news.