Market Viewpoints
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“Asking liberals where wages and prices come from is like asking six-year olds where babies come from.”
Summary:
Political passions are running high in Washington, and following the news that President Trump may have tried to coerce FBI director James Comey out of investigating Michael
Flynn’s ties to Russia, the word “impeachment” has entered the US political lexicon once
again. But even with a handful of lawmakers eyeing this possibility, impeachment is still a longshot. Trump is still very popular within his voter base and most Republican Congressmen owe their seats to Trump’s victory. A massive shift in public opinion across the country would need to happen in order to pressure Republicans in Congress to take on President Trump. If there is no evidence that implicates Trump, I suspect that this will be the media’s last hurrah and Democrats will suffer most for fanning wild speculation. Those rooting to see the back of Trump should beware of the fantasy that the nation’s problems would be solved if only Trump could be made to disappear. Millions of Americans still have legitimate concerns about everyday economic life. Middle America has seen its jobs disappear to technological change, local factories have closed, and towns and cities have lost their prosperity. Not recognizing thisas the bigger problem that faces America, displays a rudimentary misunderstanding of those
who voted for Trump. It would be foolish to say that a major scandal involving the President would have no impact on financial markets, but it would likely be temporary. The ultimate driver of the S&P 500 and financial markets over the longterm, is economic growth in the US and abroad and both these measures are holding up quite well.