Democrats’ impeachment shouldn't upset the U.S. economy or markets, according to some advisors interviewed by Financial Advisor
In fact, the sentiments of the three advisors interviewed mirrored those of some Wall Street analysts who believe impeachment will only hurt the stock market if it derails President Trump’s re-election bid and hands the Democrat nomination and possible victory to left-leaning candidates such as Elizabeth Warren or Bernie Sanders.
“No effect,” Glenn J. Downing, a partner at advisor firm CameronDowning in Miami, told Financial Advisor in an email after the House voted 232 to 196 yesterday to formalize impeachment proceedings against a U.S. president for only the third time in history.
“What's going on in the House is not an impeachment. It is a lot of talking impeachment, and entirely partisan,” Downing said, adding "Impeachment will die in the Senate. Everyone knows this. Hence my assertion: no effect."
“What's more important for clients is planning for the inevitable end of a business cycle and positioning investments appropriately,” he said.
In New York, advisor Allan Katz, president of Comprehensive Wealth Management Group in New York City's borough of Staten Island, said he believes that after the dust settles, impeachment may well have a positive impact on the markets and the economy.
In fact, Katz said the impeachment process could backfire on Democrats.
“In the long run, I believe this will help my clients. Impeachment may or may not happen, but there is little chance of [President Trump’s] removal. This will strengthen and energize Trump's base and lead to re-election. It will most likely lead to a big turnaround in the House as well,” Katz said.
“Trump is a very good President for the economy, and therefore for the growth of the stock market and real estate. He is also favorable for taxes. In the short term, this will be a distraction mainly to the media, general public and Congress. However, Trump will continue being president and putting America first,” Katz said.
Also in New York, Larry Luxenberg, a managing partner and chief investment officer of Lexington Avenue Capital Management LLC, said, “It's impossible to know what will happen with the markets during the impeachment process, but in the two most recent instances, the markets were mixed. The Clinton impeachment came in the middle of a record three years when the S&P 500 returned more than 20% each year."