Financial markets would probably accept the more moderate candidates and welcome the certainty of an incumbent re-election. However, the equity markets would probably decline and interest rates may rise back to “normal” levels, causing a corresponding economic slowdown.
Scenario Two – The Dark Grey:
What if the end game is the actual removal of President Trump by the House of Representatives declaring the 2016 election void? In other words, a House-led coup? The arrest of a sitting president.
Potential Market Effects:
Civil war would seem to be inevitable. The financial markets collapse, the dollar suffers a huge decline and global economic chaos ensues. Obviously, gold and Bitcoin would soar.
Could a civil war in America actually happen? The Democratic opposition party has to have a Plan B to this impeachment inquiry that is dead in the U.S. Senate. What is the missing Plan B or end game?
Let’s just say the Grey Swan is turning a darker shade of grey.
Bill Taylor is managing director and chief investment officer of Entoro Wealth LLC.