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Comey Who? Markets Don't Care About What The Ex-FBI Head Has To Say

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Comey Who? Markets Don't Care About What The Ex-FBI Head Has To Say
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Former FBI Director James Comey is scheduled to testify in front of the U.S. Senate Select Committee on Intelligence Thursday, but does anyone care anymore? According to Jonathan Golub of RBC Capital Markets the answer is yes and no — depending on who you ask.

The media certainly cares about Comey's testimony, but investors don't, Golub said during CNBC's "Squawk Box" segment on Thursday. Rather, investors care about the economy and may be annoyed with the fact that the ongoing "noise" from Washington is a distraction to business-friendly policies the White House promised to introduce.

Comey has even released prepared remarks ahead of his testimony, which may eliminate any concerns for potential surprises.

The Economy Remains Strong

Despite the distraction and uncertainty toward new policy introductions, the likelihood of a recession is really small, Golub added (see Jonathan Golub's track record). After all, President Donald Trump will remain president and corporate earnings remain strong and are expected to grow — which bodes well for the equity market, there is no indication the economy is setting itself up to blow up.

"The market doesn't break to the downside unless you move towards a recession," he concluded. "So, a weak or good economy are probably both sufficient for the market as long as the Fed is not killing it — and they aren't in a position to kill it right now."

Darrell Cronk of Wells Fargo Investment Institute was also a guest on the "Squawk Box" segment and echoed Golub's opinion. Thursday's testimony is merely "consuming all the oxygen out of Washington D.C. right now," he explained. As such, the topic of healthcare remains stuck in the Senate, tax reform plans remain a series of bullet points on a piece of paper and the infrastructure spending plan continues to stall.

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Image Credit: Screenshot from 6/8/2017's Open Hearing. James Comey Testimony On President Trump & Russia Probe".

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