When will the market notice the pressure on President Trump?

The markets (and the VIX index) refuse to react to the instability in the world of politics and international relations: a motive that has been repeating throughout the last 12 months. The legal problems of President Trump, the guilty verdict on Paul Manafort and the admissions of Michael Cohen, as well as the ongoing investigation of Robert Mueller, have yet to exert a significant pressure on the markets. And the market is probably right, as the speculations about impeachment seem farfetched and unrealistic at this point.

According to most strategists the key is the economy, because the strong economy will always maintain a positive view on the President. Most likely, the markets will continue to largely ignore the problems of the President. The economy is strong and growing, while Robert Mueller has not presented definitive evidence for impeachment yet. We expect American markets to remain calm, despite the political background. As the VIX index has shown from the beginning of the year, volatility in politics does not translate into volatility in the markets.

Source: CNBC

Original post: It's going to take a lot more for the stock market to start caring about Trump's legal woes

Chart: Used with permission of Bloomberg Finance L.P.

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