As the Global press corps and the US Democrats gloat over President Trump’s travails this week, one would think that ‘the Donald’ has lost the confidence of everybody in the world. The accusation that the President attempted to pervert the course of justice in a conversation with the former FBI chief Comey has raised the prospect of impeachment – if successful, Trump would be “… out of the suite and on the street.”
But while the Washington elite don’t like him, the Global Markets have a different view. The Bloomberg grab shows the performance of the US S&P 500 over the last two trading days. The significant drop from Tuesday to Wednesday corresponds to the news of Trump’s potential impeachable action. Similar pictures can be seen in the currency market and the flight to quality trade benefiting the US Treasury market.
The markets clearly value Trump over and above the Republican party and the usual array of Washington lawmakers. I say this because, were Trump actually forced to step down as President, Vice-President Pence would take over and the Republicans would continue to hold a majority in both Houses of Congress. Everything would be the same except for Donald Trump.
This is telling and is a fact that the press corps prefer not to mention. Trump is tagged by the markets as someone who has the will and ability to effectively drive change in the US practice of Government. Impeach him and that institution reverts to its old ways.
Who loves ya Donald? The markets love ya.