Revelations in shadow: Robert Muller and Wall Street's ignorance

Investors generally ignored the political drama that accompanied the Trump administration during the first two years of the mandate, but strategists and analysts say the market will soon have to face the consequences. The Justice Minister, William Barr, on Sunday announced in a letter to Congress the findings of the Robert Mueller investigation. Within four pages, Barr quotes Mueller's report, stressing that he "does not disclose" the president in serious violations.

In Florida, Trump said the report proves that "there was no collusion," as he has been saying for months. Also, Trump said there was no impediment to the investigation and mentioned that it was a shame what he and the nation had to experience from the so-called " by Trump attempting to "improperly attack" him.

According to the report, Mueller's investigation has found no evidence that during the Trump campaign there have been attempts to manipulate the presidential election in 2016 and, in particular, in co-operation with Russia. Mueller was also investigating whether Trump had hindered the investigation process, but overall on this issue, he remained without a final answer.

Last week, analysts predicted serious volatility in the markets if the report had direct evidence. But it seems that the results will rather "calm down" them.

The fears of impeachment also seem to diminish. Earlier this month, House Speaker Nancy Pelosi said that although she did not think Trump was appropriate for this administration, she was against impeachment.

The long-term effect of the report may not materialize at least until the 2020 elections, when the Democratic Party is expected to take control of the Senate and retain a majority in the House, with the potential to win the White House. Especially if Mueller's disclosures reduce Trump's chances of being re-elected.

"A united Democratic government can scare the markets." - says Brad McMillan, chief investment strategist at the Commonwealth Financial Network. However, it is rather early to talk about the future intentions of the Democrats.

On the part of the Democrats, there are enough candidates who are nominated for president, and bold economic policies and reforms are already being proposed by candidates such as Elizabeth Warren and Bernie Sanders as: new types of financial transactions or more taxes for the rich. This could have a negative effect on the shares.

But whether the will to impose left-oriented policies will catch the imagination of the main Democratic voters remains an open question. "There are many opportunities." - says McMillan. "If the nominee is Joe Biden, that's one, but if she's nominated Elizabeth Warren, that will be totally different."

Source: Market Watch

Photo: Unsplash

Read more:

• Boeing 737 crashes in Iran as soon as it took off
• Iran with new threats, Trump repeals his statement from the Oval Office
• US bases in Iraq were hit by the Iranian national guard
• Rumors of an attack by Iran against a US base in Iraq
• The Phase I Deal signing ceremony will take place on January 15 in Washington