An initial reaction in such a scenario would be the suspension of the so-called Trump Rally, which has taken the US indices to new historical records, according to Peter Kenny, chief strategist at the Global Markets Advisory Group. The expert commented that the investors really felt comfortable about what to expect from Trump as president.
Fundamentally, the US economy remains in good shape in an environment of low inflation and steady growth. Meanwhile, Trump's nomination for Jerome Powell's fed leader has won the admiration of market players.
It is possible, after the initial shock to the market, with a potential removal of Trump, that markets quickly find support, Kenny said. Pens, is likely to continue with Trump's planned tax policies, as well as the nominated Powell.
Or, according to a number of experts, such political uncertainty can be short-lived and quickly overcome. And if you follow Buffett's advice - to buy when everyone is afraid, a deeper adjustment of the indices, could provide good opportunities for investors to enter the market.