The impeachment headlines are back. You don't have to look to far. And listen. I'm not saying which way it will go, or what I think, but I will say this... and I said it over 2 years ago when this Impeachment talk was just as loud as it is today....We will look back on this impeachment... no matter how it turns out, as another excuse for this market . We added this Impeachment excuse to the list of named excuses back in 2017. Excuses for this market... there have been many... and each one, while triggering a brief pull back, end up being tremendous buying opportunities.
If this impeachment event was truly going to smash the markets... stocks would already be 20%+ lower than they are today. The market is smarter than all of us.. and then some.
Just like the recent REPO headlines. If the Repo news was really a market crasher... guess what? The market would have crashed long before you searched GOOGLE for REPO.
Impeachment? It sounds terrible. I don't care what side of the fence you are on. It's not something that would be bullish for the market, it would add a lot of uncertainty. The market doesn't like uncertain times.
And yet here we are a few percentage points away from fresh record highs despite a plethora of uncertain headlines. What does that tell you?
The market is certain. It is certain that the current excuses to sell, while they may cause a day or two of tree shaking, like we saw on Tuesday, remain reasons to buy. Until that changes, this market will continue to climb the proverbial wall of worry.
It doesn't hurt that almost every Central Bank is putting their feet back down on the asset price accelerator.
If QE1 QE2 QE3 helped goose the markets higher.... I'm sure the bears will find a reason why QE4 won't. And that is a good thing. We need people to be bearish and cautious.
However the market is telling you, impeachment or not, this market is going to continue to grind its way higher.
My concern remains, and I said it many years ago... that nameless sell off. When the market pulls back sharply and there is no obvious excuse. Until that time comes.... all these named sell-offs have been tremendous buying opportunities.