In New York City on Friday the Dow Jones Industrial Average soared to 28,004, a new record. In fact all major U.S. stock indexes hit new highs, and the SNP 500 hit its longest streak of weekly gains in two years. Put simply, it was a really good day for the economy.
Meanwhile in Washington, the public phase of the House impeachment inquiry slogged along, with Democrats all but conceding that even if they vote to impeach, the removal of the president by the Senate is all but certainly not going to happen.
Are these two major events on the Acela corridor related? It’s difficult to say, but some experts feared impeachment and removal could put a serious strain on the market. Asked last month by CNN if he believed impeachment could crash the market, former Goldman Sachs CEO Lloyd Blankfein said that it could, essentially arguing that markets don’t like that kind of political disruption.
So why hasn’t the impeachment inquiry spooked the market? Joseph Brusuelas, chief economist at the audit and tax firm RSM, said he does not believe impeachment has any material impact on the markets or economy.
“Given where the public is and the small probability of conviction in the Senate, there is at this time little risk to the outlook…If there should be a major shift in public opinion and the opinion of potential jurors in the U.S. Senate, that is where economists, financial professionals and market actors would first look for stress,” he said.
David Kotok, Chief Investment Office at investment advisory firm Cumberland, stressed a similar point, saying, “The markets see the impeachment process as a pure political ploy. So the metaphor is Clinton, not Nixon. Hence no market reaction to impeachment proceedings. So far, this is not a Nixon type story. If evidence surfaces to a smoking gun level like the Nixon 18 ½ minute gap in a tape, then things change.”
There are few things telling about this situation. First, it is yet another indicator that experts in myriad fields believe the Trump presidency will survive. Democrats, and progressives in the media are now claiming they always knew the Senate would never convict, but only a few weeks ago they were waxing poetic about how televised hearings would sway public opinion and pry loose enough GOP senators to sink Trump.
The Trump bashing has been encouraged by his own behavior, which has involved incessant public attacks on all persons and things Democratic since the moment he walked onto the political stage. People who identify with Democratic goals and principles can’t help but take all of that personally. It’s only human nature to do so.
@Greg: No it hasn’t. The only behavior of Trump’s that has encouraged bashing is him becoming President. The left cannot come to terms with that fact and they think acting like a petulant child somehow will solve the problem. People who think they can personally attack Trump and his family but that Trump is forbidden to respond are pretty immature as well. That is outright stupidity.
@Greg: Idiocy and hypocrisy wont drive home your point brother, I dont like QE, but this is being done as an emergency method not to nurse along decline so the sheep wont rebel.
I hope you wake up to how the last admin was a terrible failure and continuing or repeating their methods is simply wrong.
Just because everyone is doing it doesnt mean you should flys both ways.
BTW the democrats started it, the incessant public attacks began before he was sworn in. The big difference Trump fought back, so they tried harder and he still wouldnt back down, dont expect him to back down. Biden should stop trying to invite people to fight who could knock the crap out of him.
21,000 on the Dow as predicted in #42—-look for dead cat er dead analyst bounce Fri and Mon to about 24,000 then a re-test of 21,000.
The market is BROKEN near term and we are in a BEAR after an 11 year BULL.
Kitt “Investors” are ALL “long term” now as the recovery to 29000 will take many years not days or months.
I don’t blame Trump for the collapse of 8,000 points in 14 trading days–as I did not credit him with the 12,000 point rise over 3+years—the stock market lives on it’s own and when moves like this occur based primarily on greed and fear–it is what it is,
Trump has lied so much over his 3 years people won’t know when he;s telling the truth—-Ari Fleisher panned the ill prepared speech he READ so hesitantly and emotionleesly.
Not as bad as mini Mike —but close—he must do better and I think he will—otherwise mkt won’t hold 21000 and long term will become lifetime–yours or your kids or grand kids—–
@Richard Wheeler: Cant see an election year manipulation just like 2000 and 2008? The QE only had a blip but didnt stop the virus in the market.
I appreciate your concern, Ive seen people who bailed at the wrong time wow imagine if my grandparents had left me some stocks like coke, deere ,Johnson and johnson, At&t, disney, dow chemical etc. Did you sell your AVIS stock at .40 cents a share, in 2008?
Never let emotion and finances mix my brother. And this to shall pass.
Trumps fibs cant match an iota of the medias big fat lies.
@kitt: Nailed it so far—rally continues Mon to 24.000 then retest of 21.000—-What Trump does matters not at this juncture
The Fed has dropped interest to near-zero in one fell swoop on a Sunday? It may be a coin flip whether that will reassure the market for its Monday morning opening, or be viewed as somebody hitting the panic button. There’s virtually no room left for further rate reductions.
@Greg: If the left would stop the propaganda of Trump being incompetent and his response a failure, confidence would be restored to the markets, the panic ended and extensive restorative measures unneeded. But Democrats don’t possess that much altruism and patriotism. They don’t believe that attitude will get them power.
@Greg: I would refi my house if I hadnt paid cash for it.
I hope many with good payment historys and higher interest take advantage of this opportunity.
They tighten home lending so not to repeat the housing crash 20% down and good work history.