“The genius of impeachment lay in the fact that it could punish the (wo)man without punishing the office” – Arthur M. Schlesinger, Jr.

How Have Markets Reacted to Previous Impeachment Processes?

With news this week that the U.S. House of Representatives will open impeachment investigations on President Trump, you may be wondering how, if at all, markets will be impacted.

IA Clarington provides the table below which charts market performance during the two previous impeaching investigations against Presidents Nixon and Clinton.

In both cases, markets were on a specific trajectory (downwards with Nixon, upwards with Clinton) and the impeachment investigations did nothing to change that trajectory. In other words, markets were insensitive to the hearings.

The investigation has only just begun. We’ll be able to provide ongoing analysis as more facts come to light.

Enjoy your weekend.

Weekly Update – By The Numbers

North America

• The TSX closed at 16,694, down 206 points or 1.22% over the past week. YTD the TSX is up 16.55%.
• The DOW closed at 26,820, down 115 points or 0.43% over the past week. YTD the DOW is up 14.97%.
• The S&P closed at 2,962, down 30 points or 1.00% over the past week. YTD the S&P is up 18.15%.
• The Nasdaq closed at 7,940, down 178 points or 2.19% over the past week. YTD the Nasdaq is up 19.67%.
• Gold closed at $1,503 per ounce, down $1 or 0.07% over the past week. YTD gold is up 16.96%.
• Oil closed at $55.99 per barrel, down $2.10 or 3.62% over the past week. YTD oil is up 22.17%.
• The USD/CAD closed at 0.7554, up 0.10 cents or 0.13% over the past week. YTD the USD/CAD is up 3.08%.

 Europe/Asia

• The MSCI closed at 2,176, down 22 points or 1.00% over the past week. YTD the MSCI is up 15.44%.
• The Euro Stoxx 50 closed at 5,546, down 25 points or 0.70% over the past week. YTD the Euro Stoxx 50 is up 18.16%.
• The FTSE closed at 7,426, up 81 points or 1.10% over the past week. YTD the FTSE is up 10.37%.
• The CAC closed at 5,641, down 50 points or 0.88% over the past week. YTD the CAC is up 19.23%.
• DAX closed at 12,381, down 87 points or 0.70% over the past week. YTD DAX is up 17.26%.
• Nikkei closed at 21,879, down 200 points or 0.91% over the past week. YTD Nikkei is up 9.31%.
• The Shanghai closed at 2,932, down 74 points or 2.46% over the past week. YTD the Shanghai is up 17.56%.

Fixed Income

• The 10-Yr Bond Yield closed at 1.675%, down 0.08 points or 4.56% over the past week. YTD the 10-Yr Bond Yield is down 37.73%.

Sources: Yahoo Finance, IA Clarington, Dynamic

This information is provided for general information purposes only. It does not constitute professional advice. Please contact a professional about your specific needs before taking any action.