A few number of investors in the United States have become courageous after Donald Trump was impeached by bipartisan majority in the House of Representatives on Wednesday, January 13.
Techeconomy.ng understands that a total of 232 lawmakers, including 10 Republicans have accused Trump of inciting the storming of the Capitol, the seat of the US Congress with a speech on 6 January to supporters outside the White House.
An impeachment statement by the House read that the embattled president “repeatedly issued false communiques asserting that the presidential election results were fraudulent and should not be accepted”.
According to the statement, he then repeated these claims and “wilfully made statements to the crowd that encouraged and foreseeably resulted in lawless action at the Capitol”, leading to the violence and loss of life.
“President Trump gravely endangered the security of the United States and its institutions of government, threatened the integrity of the democratic system, interfered with the peaceful transition of power, and imperilled a coequal branch of government.”
Despite Trump’s impeachment, the investors said that they are hopeful that the president-elect, Joe Biden, could make headway with his trillions of dollars COVID-19 stimulus programmes.
Recall that Biden said he had asked whether the Senate could “bifurcate” its schedule, so impeachment and his agenda could be dealt with simultaneously.
Speaking about the development, J.J. Kinahan, chief market strategist for TD Ameritrade said: ”The impeachment is obviously not a good thing for the country with any president.
”But I also think the market is balancing what that [impeachment] means with the new administration coming in and the hopes for new stimulus.
“Can we go half-day on dealing with the impeachment and half-day on getting my people nominated and confirmed in the Senate?”
On his part, Chris Larkin, managing director, trading and investing product E-TRADE Financial said: ”As the building blocks of the Biden administration are well-understood by the market at this point, politics likely are not taking centerstage right now, at least where the market is concerned.
”Keep in mind, we’re heading into earnings season where expectations are high. Companies have proven they can drive revenue and growth with lower cost structures due to low borrowing costs, remote work, and reduced travel—so traders are likely eyeing the numbers more closely than what’s happening in Washington.”
Also speaking about the investment in the US, Peter Boockvar, chief investment officer at Bleakley Advisory Group, said: ”The stock market only cares about the direction of the economy, earnings, interest rates and the actions of the Fed.”
Jeff Buchbinder, equity strategist for LPL Financial said: “I don’t have precise data on stock market performance during impeachments. But we would say that the economic cycle is a much more powerful driver of stock market performance than politics or policy.”