{"id":132635,"date":"2018-08-27T07:35:09","date_gmt":"2018-08-27T11:35:09","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=132635"},"modified":"2018-08-27T05:30:08","modified_gmt":"2018-08-27T09:30:08","slug":"cohen-manafort-trump-whats-next","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/08\/cohen-manafort-trump-whats-next\/","title":{"rendered":"Cohen, Manafort & Trump! What\u2019s next?"},"content":{"rendered":"
August 27, 2018<\/div>
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Article by ForexTime<\/a><\/p>\n

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Last week has been a terrible one for President Trump. His former campaign chairman Paul Manafort was found guilty on eight counts of bank and tax fraud on Tuesday, while his ex-personal lawyer Michael Cohen pleaded guilty to campaign finance violations and other charges on the same day. Investors who believe that Trump policies were the key attributes to the recent stocks rally may start becoming worried as speculation that he may be impeached is growing day after day. After all, he\u2019s the one who sets the path for fiscal policies.<\/p>\n

However, when looking at last week\u2019s markets performance, it seems investors didn\u2019t really care about the drama happening at the White House.\u00a0 The S&P 500 closed at a new record high on Friday and cleared all doubts that we\u2019re in the most extended bull market in U.S. history.<\/p>\n

Although it\u2019s difficult to know what happens next, it\u2019s worthwhile looking at history and see how markets reacted on the impeachments of previous Presidents. The Watergate scandal led to the resignation of President Richard Nixon in August 1974. Stocks were already in a bear market since 1973 due to the collapse of the Bretton Woods system, the dollar\u2019s devaluation and the 1973 oil crisis. Two months after Nixon\u2019s impeachment, markets found a floor and rallied by more than 50% in less than a year. Meanwhile, Clinton\u2019s impeachment attempt in the late 1990\u2019s by the House of Representatives occurred during a robust economic expansion and investors didn\u2019t care less. Markets continued to rally until the burst if the dotcom bubble.<\/p>\n

These two historical examples confirm that investors don\u2019t really care who the President is. It\u2019s economic growth, fiscal policies, monetary policies, and earning growth that matters.<\/p>\n

The current political turmoil won\u2019t affect economic expansion or employment. U.S. corporates continue to benefit from tax cuts and got the wanted deregulation.<\/p>\n

What investors should be focusing more on is what\u2019s next for the Federal Reserve as the yield curve gets closer to inversion. If Fed Chair Jerome Powell decided to slow down the pace of tightening policy, this might provide an additional boost to stocks while it weakens the dollar. Political noise will add some volatility but won\u2019t change the trend.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer:\u00a0<\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime Last week has been a terrible one for President Trump. His former campaign chairman Paul Manafort was found guilty on eight counts of bank and tax fraud on Tuesday, while his ex-personal lawyer Michael Cohen pleaded guilty to campaign finance violations and other charges on the same day. Investors who believe that […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-132635","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/132635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=132635"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/132635\/revisions"}],"predecessor-version":[{"id":132645,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/132635\/revisions\/132645"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=132635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=132635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=132635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}