For the first time, we can recall the stock market has not leveled off or plummeted with a major political disaster. In fact, it continues to soar as the markets are blowing off the impeachment of President Trump. President Donald Trump is not going anywhere, and the stock market knows it.
No one in history has put the economy back on track so fast and awakened the stock market as this president has. There is no negativity facing the economy as it is the best, it has been on over half a century. Investors see it and capitalize on the opportunity while focusing on the trade deals with China, not the hypocrisy and “witch hunts” of Congress.
Daniel Clifton, head of policy research at Strategas, stated, “Trump needed his victories. He’s got NAFTA, we got a China deal, and we got a budget. He got all these victories while he was under impeachment.”
Treasury Secretary Steven Mnuchin stated the deal made with China on trade will be signed after the first of the year. It is almost like there was no impeachment at all. The president continues to march America right through the storms and continues to come out victorious.
Amidst all the stupidity around the Democrats, the final part of the year was able to see much accomplished. Most of it should have been done sooner, but we all know who to blame for that.
Democrats were too busy searching for evidence that does not exist. Somehow, someway, they managed to pull off averting another government shutdown, placing a budget with the trade deal with Canada and Mexico to replace the North American Free Trade Agreement and other small tasks that needed to be taken care of before the end of the year.
Jack Ablin, chief investment officer at Cresset Wealth Advisors, had this to say, “Investors have virtually ignored what’s going on in Congress. They care about the economy. They care about profits. They care about trade, and if they thought the president was in serious jeopardy of losing his job, they’d care. It’s just a disruption removing a president. It would probably undermine the value of the dollar, create some uncertainty, and make [Vice President Mike] Pence the president.”
Ablin continued, “We’re looking really at first-quarter data and the election. The strong data is getting a little bit weaker, which was the labor market and consumer, and the weaker data, like the manufacturing, production data is getting a bit stronger.”
The S&P rose five percent since the impeachment proceedings began. It was almost a mock from the stock markets as everything rose instead of fell. It had crossed the 3,200 marks and closed at 3,205 for the first time since the Democrats began entertaining the inquiry. This proves we have a working president who doesn’t care about anything else but the prosperity of America.
Marc Chandler, the chief market strategist at Bannockburn Global Forex, stated his thoughts on the impeachment, “It’s not going to affect monetary policy or fiscal policy, and people think it’s not going to happen. It’s more of an embarrassment. In the first 100 years, they only tried to impeach Johnson. It’s what it means for American politics.”
Chandler added, “I think the more important thing is policy, and what’s going on in the interest rate differentials. I just don’t see how the substance has relevance for foreign exchange. Unless you think Trump is going to be removed, it’s American political noise.”
Clifton explained how it can also remove unwanted Democrats from the primary, “The market doesn’t care about impeachment, but there are byproducts of impeachment that could matter for the markets.
If you delay impeachment for a couple of weeks, and you delay the Senate trials, you’re removing Warren and Sanders from the campaign trail just ahead of primaries. I think that’s market-friendly.” Both Bernie Sanders and Elizabeth Warren are harmful when it comes to health-care stocks and the financial sector stocks.
As for President Trump, there almost seems to be nothing to stop the Trump Train from barreling down the railroad lines right into a victory for the 2020 election. With these outstanding numbers in the market and the economy soaring, there is nothing to stop him and the GOP to “Keeping America Great!”
In many ways, it is almost like he is invisible to all his haters and those who attack him day after day. At the end of the day, all that matters is the numbers are up there!