As the official impeachment inquiry into President Trump moves forward, many investors are concerned about the potential impact to the stock market.
While it is impossible to predict exactly what will occur regarding both the impeachment inquiry and stock market movement, we can look back on past impeachment proceedings to assess how the market could perform in the present day.
AssetMark reports that when comparing President Nixon and President Clinton’s impeachment inquiries, the market reacts more to the overall strength of the U.S. economy, placing less weight on individual political issues. That being said, it is likely that current impeachment proceedings will boost market volatility, although it is unclear to what degree.
In our view, it is important for investors to keep their eyes on long-term economic growth. The stock market has weathered numerous political rough patches, and this time is no different.