- President Donald Trump unleashed a tweetstorm to defend his presidency against the Democrats.
- Most analysts believe that the proceedings are nothing but noise.
- However, one portfolio manager believes that the impeachment can add a new level of risk to an already fragile economy.
President Donald Trump went berserk on the first day of United States House Democrats’ impeachment proceedings. Trump released a storm of 34 tweets and retweets to defend himself against the Democrats’ assault against his presidency.
The stock market was largely unconcerned by the political drama. Both the S&P 500 and the Dow Jones have managed to post six consecutive green candles as the Democrats went on the offensive. This is an indication that investors are confident that the impeachment hearings won’t unravel into a full-on political upheaval.
While most investors feel comfortable, one portfolio manager thinks that the impeachment is a potential catalyst for a market downturn.
Many Analysts Treat the Trump Impeachment as Noise
The markets are ignoring the impeachment proceedings because investors probably know that they pose very little threat. After all, the Senate is dominated by the Republicans and it is unthinkable that they’ll turn their backs on Trump.
This is mostly the sentiment that I received after asking for the opinion of market experts on the matter. For instance, Lawrence Lepard, an investment manager, said,
My read is that while [Donald Trump] may be impeached in the House the Senate will never confirm. So all this is just a lot of noise.
Top economist Alex Kruger shares the same view. He told CCN,
It’s noise in my humble opinion.
Trader JM Vala als doubts that the impeachment will get serious. He said,
The only way we see something outside the standard ranges is if somehow the Republican- controlled Senate decides to play against their own party, which, I don’t…