Trump and Impeachment: Fluctuated Stock Market and Terrified Investors

Donald Trump is accustomed to being in the headlines and make it to the front page. This time however, the alleged accusations on the U.S. president might shake the U.S. stock market and investor's peace of mind. Mr. Trump has been accused of using his office to "solicit interference from a foreign country" in order to elect himself in next year’s election. The ramifications on stock market and economy in general can be weighed in short term and long term.

Short Term: "If I ever got impeached, I think the market would crash. I think everybody would be very poor,” were the words of Mr. Trump. In moments after the announcement of Mr. Trump’s impeachment inquiry, Dow saw a modest fall of 142 points and NASDAQ witnessed a severe fall as well.

Long Term: Politics would be a decisive factor when predictions are made for long run. Even though Donald Trump, a Republican, has done major tax cuts which are venerated by his loyal followers, his tendency to relentlessly manifest corruption into serious matters is very treacherous and he must be held accountable. However, as speculation suggests, the dismissal seems farfetched because of republicans’ majority in the Senate.

Impeachment of President Bill Clinton in 1988 is the quintessential tale of the long-term effect of an impeachment process. He was impeached by the House but ultimately acquitted by the Senate in February 1999. The stock market surged in that interval and so did the consumer confidence. The consistent consumer confidence is what kept the U.S. economy growing in 1999.

Impeachment is a litmus test to the president’s limits and sets a threshold to the extent of exercising presidential power in sordid ways. Disregarding current economic quandaries including trade wars and Brexit, If the consumer spending persists, America can make it through the impeachment without a stock market collapse.

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