Does the ASX care that Donald Trump has been impeached, twice?

US President Donald Trump has been impeached twice. Do the markets care when Donald Trump is being impeached?
The post Does the ASX care that Donald Trump has been impeached, twice? appeared first on The Motley Fool Australia. –

The United States economy constitutes roughly one-fourth of the world economy, according to NASDAQ’s January 2020 analysis.

Remarkably, the person employed to oversee this incredible international beast as part of his job has been nearly booted out of office now, twice.

When Congress is continuously taking active duty to dethrone the President of the United States, I can’t help but ask myself: Does the ASX share market care that Donald Trump has been impeached, twice?

The first time Donald Trump was impeached

The first time US Congress tried to fire Donald Trump was in 2019. It was 18 December 2019, to be exact.

In the four weeks that followed, the S&P 500 was up around 4%. The S&P/ASX 200 Index (ASX: XJO) followed suit, knocking up 3.3%, while the S&P/ASX All Ordinaries Index (ASX: XAO) racked up over 15% from 18 December 2019 until 20 January 2020. 

This was a short-lived victory considering the 33% dive that the All Ords took in early February 2020.

The second time Donald Trump was impeached

US markets weren’t really bothered upon the news that Donald Trump was getting kicked out again. Wall Street bench marks didn’t do much overnight. The Dow Jones Industrial Average and S&P 500 Index each moved less than half a percent up and down, respectively.  

At the time of writing this, the ASX 200 has inched up by 0.44% 

Judging by these numbers, it doesn’t seem like investors are too shook about what’s happening in the White House. Perhaps Washington has already lost credibility?

Wait, what does the VIX say?

The S&P/ASX 200 VIX (INDEXASX: XVI) measures market volatility. The VIX measures high when market fear is high. A lower VIX signifies investor complacency. People use the VIX index to predict market patterns and certainty levels.

The Australian Financial Review defines the VIX Index as ‘a higher visibility output of options markets’ further known as the “fear and greed” index.

The ASX noted earlier that the VIX is “sharply lower today, dropping -0.54 points or -3.82% to 13.69”. The index has lost -4.02% for the last five days, but gained +24.32% over the last 52 weeks.

However you look at it, the VIX is built to assess investor sentiment and, based on today’s performance, it doesn’t seem like the market is generally fussed.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Does the ASX care that Donald Trump has been impeached, twice? appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!