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.
Showing posts with label impeachment. Show all posts
Showing posts with label impeachment. Show all posts
Thursday, 7 December 2017
Wednesday, 6 December 2017
What can happen if Trump is removed (1)?
Financial markets have experienced a difficult Friday last week. The leading US indices dropped momentarily after it became clear that Michael Flynn admitted he had lied in the testimony given to the FBI and could provide new evidence of inappropriate relations between President Trump and Russia.
What could happen?
The chances for President Trump to step down from his post are rising. This could be the worst scenario for investors because it would lead to serious political uncertainty at a time when stock prices rose seriously in anticipation of Trump's tax reform. The latter, however, is delayed and there are serious chances not to become a reality since the beginning of next year, as were the real expectations of investors.
There is a real opportunity for Washington to turn to its biggest crisis since the Watergate scandal in the early 1970s. At the same time, when Trump is removed, he is expected to be replaced by current Vice President Mike Pens, who would become premature the 46th US president.
And while this still seems like a fairly unlikely scenario, more and more investors are beginning to wonder, what would President Pens mean for the US stock markets?
What could happen?
The chances for President Trump to step down from his post are rising. This could be the worst scenario for investors because it would lead to serious political uncertainty at a time when stock prices rose seriously in anticipation of Trump's tax reform. The latter, however, is delayed and there are serious chances not to become a reality since the beginning of next year, as were the real expectations of investors.
There is a real opportunity for Washington to turn to its biggest crisis since the Watergate scandal in the early 1970s. At the same time, when Trump is removed, he is expected to be replaced by current Vice President Mike Pens, who would become premature the 46th US president.
And while this still seems like a fairly unlikely scenario, more and more investors are beginning to wonder, what would President Pens mean for the US stock markets?
Sunday, 23 July 2017
Citi: Trump's impeachment risks have risen
For investors, President Trump's impeachment option seems unlikely. Citi Bank, however, warns that the likelihood of this has risen.
The comments from the banks became reality after Donald Trump Jr., tweeted emails detailing his greetings, after sources identified as related to the Russian government have disclosed compromising emails to President-elect candidate Hillary Clinton.
Markets have reacted negatively to this information, with the Dow Jones Industrial Average index losing 129 points of its value immediately before recovering all its losses.
Impeachment is unlikely given the complexity of this process and the lack of sufficient evidence of a "serious crime," according to Citi analysts.
The bank also commented that such a solution would require serious political pressure, and Republicans who control Congress at the moment would hardly allow this to happen.
On the other hand, and despite many unknowns in Trump-Russia relations, Citi analysts believe that the risk of impeachment for the US president is now higher than before, although this is still not a baseline scenario.
The comments from the banks became reality after Donald Trump Jr., tweeted emails detailing his greetings, after sources identified as related to the Russian government have disclosed compromising emails to President-elect candidate Hillary Clinton.
Markets have reacted negatively to this information, with the Dow Jones Industrial Average index losing 129 points of its value immediately before recovering all its losses.
Impeachment is unlikely given the complexity of this process and the lack of sufficient evidence of a "serious crime," according to Citi analysts.
The bank also commented that such a solution would require serious political pressure, and Republicans who control Congress at the moment would hardly allow this to happen.
On the other hand, and despite many unknowns in Trump-Russia relations, Citi analysts believe that the risk of impeachment for the US president is now higher than before, although this is still not a baseline scenario.
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