Today, the Dow Jones Industrial Average dropped by 1.79%; but, it’s still up 4.27% above the 2016 close. Similarly, the S & P 500 closed down 1.82%, and is still up by 5.28% for the year. And NASDAQ, which lost the most, some 2.57% today, is still up by 11.57% on the year.
It’s important to remember that the financial markets never go straight up, or straight down. There appears to have been talk around the markets lately, that some degree of “correction” (a sell-off) was necessary to calm the volatility. So, perhaps the political angst provided just the spark to settle the market! If there is any volatility in the early U. S. market trading on Thursday, it will probably be a combination of Sellers, who weren’t paying attention on Wednesday, and Buyers looking to pick-up a few potential bargains.
Jeremy Siegel, Economics Professor at the University of Pennsylvania, literally wrote the book about “Stocks for the Long Run”, is a perennial stock market Bull. Today, he said, in an interview on CNBC-TV: “If Donald Trump resigned tomorrow I think the Dow would go up 1,000 points,” Professor Siegel’s stated rational is that the market has been rallying on the Republican Agenda, and not the Trump Agenda.
I wouldn’t try to project how the stock or bond market would adjust to such a situation, especially when we don’t know how ugly it might get. Also, if Donald Trump were to be ousted, the degree to which the Trump Republican Party continues to remain comfortable with him at the helm, might reveal whether or not it will continue to maintain it majority—or even its relevance to the average American.
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