Market Overview

Investors Don't Seem To Care About Washington's Many Scandals

Investors Don't Seem To Care About Washington's Many Scandals

pBetween the non-stop allegations of President Donald Trump's secret ties to Russia, the sudden resignation of Mike Flynn as the National Security Adviser, a concerning proposed border tax, unpredictable news conferences and much more, the stock market should be under such intense selling pressure.

But that is far from the case. In fact, according to a Bloomberg report, the stock market is soaring the most under a new president going back to Lyndon B. Johnson's presidency many decades ago.

Bears will argue that the stock market is prime for a correction and the strong economic growth is merely due to years of uber-friendly policies from the Federal Reserve — and not the president's policies.

On the other hand, middle-class American investors couldn't be more hopeful.

George Schultze, the founder and chief investment officer of Schultze Asset Management in New York, told Bloomberg that the current sentiment among many investors is that they have "woken up from a bad dream."

Related Link: Why The 1% Is Still Cautious About This Market

Schultze added that the president remains determined to accomplish his many objectives, and he has a "plan that seems to be aggressive."

"Up until recently, more than 90 percent of the questions that we got from clients were along the lines of, ‘What can go wrong?'" Erik Davidson, chief investment officer of Wells Fargo Private Bank in Ranch Santa Fe, California also told Bloomberg. "Investors were afraid of their own shadows. Now, investors are more optimistic."

At the end of the day, it is quite simple for investors: they may be saying they are concerned about the various scandals in Washington but these concerns certainly aren't being reflected in the investment actions.

Image Credit: By Chairman of the Joint Chiefs of Staff from Washington D.C, United States - 170206-D-VO565-028, Public Domain, via Wikimedia Commons

Posted-In: Bloomberg Donald TrumpNews Politics Markets Movers Media General Best of Benzinga


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