The 'Ghost Of Impeachment' Continues To Haunt Investors, Strategist Says

The likelihood of President Donald Trump being impeached is hotly debated among analysts and investors, with some analysts placing the likelihood of an impeachment at 15 percent—a figure that is high enough to spook investors who much prefer the odds to be at zero.

Oppenheimer's John Stoltzfus, an investment strategist at Oppenheimer, was a guest on CNBC's "Futures Now" segment to offer his take. He argued the rebound in the stock market after Wednesday's large sell-off is an indication that investors are paying more attention to strong fundamentals, including strong earnings and positive economic data.

"The market ultimately goes with the economy," he explained. "You've got a global economic recovery that becomes less deniable on a quarterly basis, if not on a weekly and monthly basis, and then in the U.S. the economy looks sustainable."

'Ghost Of Impeachment'

But despite various data points that support a bull market, investors will nevertheless be haunted by the "ghost of impeachment." While at the end of the day it, is unlikely an impeachment will occur, "negative projection is an enemy of the market at times like this."

While downplaying the prospect of an impeachment, Stoltzfus noted that the ongoing political turmoil poses a very real threat to the president's agenda. Specifically, the White House is unlikely to receive bi-partisan agreements on much needed economic simulators such as infrastructure and tax reform.

However, in the event Trump is impeached, the market reaction might not be as harsh as assumed. According to BK Asset Management's Boris Schlossberg there might be a constitutional crisis but Wednesday's mass sell-off was essentially "muted" and the market "already assumes impeachment."

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Buy Stocks After This 'Mini-Correction,' BlackRock's Investment Strategist Says ______ Image Credit: By Mark Dixon from Pittsburgh, PA (Trump-WomensMarch_2017-top-1060131) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons