For the markets, 2019 has to be the year of the “news cycle.” It seems that every piece of information that hits the press wires has affected the market almost instantly. This is a sharp contrast to 2018 when investors basically ignored everything. And because of that, some newsworthy information may be blown out of proportion.
Take the news that President Trump may be impeached. Initially, investors have been spooked by the idea that Trump could be removed from office. And that is a valid concern considering his pro-business stance. However, looking at previous market history, we may be getting a bit ahead of ourselves with our worries. Impeachment has often been a mixed bag for investors, with markets still moving higher throughout the process. For investors today, the proceedings and saber-rattling around the inquiries may be just another distraction for the long haul.
