EDITOR'S NOTE
Adding another layer of uncertainty to a market fraught with uncertainties, we now have swings from impeachment talk.
The Dow Jones Industrials traded in positive territory throughout much of the day, but then fell sharply as Democrats prepared a House resolution to address the Ukraine scandal. It seemed impeachment cries had suddenly grown to levels that House Speaker Nancy Pelosi might no longer be able to contain.
“The market would not like impeachment," explained Andrew Brenner, a broker at National Alliance. "It increases uncertainty. ”
Then came President Donald Trump's tweet promising to release a full, unredacted transcript of his phone call with the Ukrainian president at the heart of this political firestorm. The market immediately pared its losses. But then news broke that Pelosi indeed planned to announce an impeachment inquiry at 5 p.m., sending the market lower again.
CHART of intraday on Dow
Impeachment chatter has been around for much of Trump's tenure. And it's not likely to result in his removal since the Republican-led Senate backs him. Cowen analyst Chris Krueger calls it "Bill Clinton 2.0." Impeachment likely, conviction, no.
Still, during the last impeachment process in 1998, the S&P 500 fell about 20% from its high. Bill Clinton 2.0 could become a harrowing time for investors.
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