It seems that we can’t turn on the TV without hearing talk of the impeachment. Recently, we could tune in for a day full of testimony.
Some believe that there is a clear quid pro quo; others believe this is nothing more than presidential harassment. No matter what comes of it all, it is important to remember that the economy (and stock market) are much larger than any one person or idea.
History may be of some help. In the mid-70’s we had Watergate and the Nixon resignation. During that time the market went down quite a bit. But it didn’t go down because of the political drama; it went down because oil prices had spiked 300% sending us into a recession.
In the late 90’s President Clinton was impeached by the House but not removed from office. During that time the market soared. But it wasn’t because Clinton was impeached/not removed. It was because of Y2K and the tech boom.
Political outcomes seldom drive market movements (except in the short term). While we may be quite passionate about our views and politics in general, it may be unwise to make financial decisions based on those feelings. It is much better to make financial decisions based on our personal situation and financial plan.
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