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Impeachment Talk And The Stock Market: How Will It Impact You?

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Impeachment Talk And The Stock Market: How Will It Impact You?

Speaker of the House Nancy Pelosi set into motion Tuesday afternoon an impeachment inquiry into President Donald Trump, which creates a surprising buying opportunity if history repeats itself, said CNBC's Jim Cramer.

Cramer: History Lesson

The Senate is most likely to acquit Trump, much like was the case with former President Bill Clinton, Cramer said on Tuesday's "Mad Money."

In early October 1998, the Judiciary Committee voted to recommend an impeachment inquiry. The Dow moved lower on that day by 0.8%, the S&P lost 1.4% and the Nasdaq plunged 4.8%.

The House's vote to impeach Clinton set the stage for the Dow surging 16%, the S&P gaining 21% and tech stocks skyrocketing 39%, Cramer said.

Investors who panicked over the Clinton impeachment proceedings missed out on "one of the greatest moves of all time," he said. 

"If this turns out like 1998 all over again, then you may want to buy at the moment of maximum rancor," Cramer said. "I don't know if we are there yet. It's kind of day one of the rancor."

Zor Capital's Fahmy: Bring On Dow 30K

Pelosi's announcement of impeachment proceedings matters to markets, but takes a backseat to what matters more: earnings and interest rates, Joseph Fahmy, managing director at Zor Capital, said on CNBC's "Markets Now" Wednesday.

As it stands today, earnings remain "solid" and interest rates are low, he said. 

Fahmy said he continues to stand by a prior conviction the Dow will hit the 30,000 milestone before the 2020 election. Despite political uncertainty, global investors continue to demand exposure to U.S. equities, he said. 

Fahmy's prediction of Dow 30,000 is backed by Trump, who will "do everything in his power" to get the Dow to this "nice headline, round number," he said. 

The president will likely secure a trade deal with China, introduce a new tax cut and keep pressure on the Federal Reserve to maintain rates at a low rate, Fahmy said. 

Related Links:

Pelosi: House To Move Ahead With Trump Impeachment Inquiry

Trump Denies Wrongdoing In Call With Foreign Leader; Congress Seeks Whistleblower Complaint

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