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Impeachment and its impact on markets
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Loading...Impeachment ... Again. A word with such sophisticated sound and gravity that the rare phenomenon it describes behind still resonates in our minds. Horror for every president, political system and markets?
Senate spokesman Nancy Pelosi triggered yesterday the first phase of an impeachment trial against President Trump. However, this, according to Jim Cramer, creates a great and surprising opportunity to buy, but only if the story repeats itself.
According to Cramer, the Senate is likely to justify Trump, as was the case with former President Bill Clinton.
In early 1998, the Judiciary Committee voted to launch the impeachment procedure. The DOW was down 0.8%, the S & P500 down 1.4% and the NASDAQ down 4.8%.
The Senate vote on the Clinton impeachment led the DOW by 16%, the S & P500 by 21% and the NASDAQ by 39%.
Investors who were panicked about the procedure missed one of the biggest opportunities in their lives.
Cramer says that if the 1998 scenario were to be repeated, investors should be prepared to buy when the malice reaches its most critical point. However, he does not know if we are in the moment, but definitely things have the potential to escalate, the rhetoric to deteriorate, and political relations to break.
Pelosi's decision is of great importance to the markets, but it will have to queue: interest rates, reporting season, trade war. At this stage, the accounts are stable and interest rates are low.
Keep in mind that Trump will do his best to push the DOW to 30,000 before the 2020 election. Despite political uncertainty, investors continue to increase their exposure to US markets.
Analysts expect Trump to strike a deal with China, introduce new tax breaks, and continue to pressure the Federal Reserve to achieve its goals.
Trader Martin Nikolov Read more:
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