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.
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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.
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