A Wall Street investment firm predicted the stock market would rally if President Trump steps down as president, rejecting Trump’s warning that his impeachment would cause the stock market to “crash.”
Raymond James said in the “possible” event of the president stepping down it predicted Vice President Mike Pence will help the market stabilize, CNN Business reported.
The firm acknowledged that Trump’s resignation is a “low probability event,” CNN Business reported. But the firm
“After the initial shock, we think the market rallies as Pence is a predictable, traditional, conservative choice,” CNN Business reported the firm wrote in a report published Wednesday evening.
Raymond James analyst Chris Meekins told CNN Business that the company wrote the report because people in Washington keep talking about the possibility.
“Independently, different people associated with Trump’s orbit brought this idea up unsolicited,” Meekins said.
“The markets can live happily with Pence, on trade in particular,” Greg Valliere, chief U.S. policy strategist at AGF Investments, told CNN Business. “Pence would get along far better with the Chamber of Commerce and the free trade advocates. He’d shy away from tariffs.”
“Trump has become so erratic and unpredictable that it’s annoying for the markets,” CNN Business said Valliere added. “Pence is a boring, conservative, pro-business Midwesterner.”
Trump in September warned in a tweet that his impeachment would cause the stock market to “crash.”
“If they actually did this the markets would crash,” Trump tweeted in September.
“Do you think it was luck that got us to the best Stock Market and Economy in our history,” he added. “It wasn’t!”
If they actually did this the markets would crash. Do you think it was luck that got us to the best Stock Market and Economy in our history. It wasn’t! https://t.co/V0WGVWEWTN
— Donald J. Trump (@realDonaldTrump) September 26, 2019
In June, Trump tweeted: “The Trump Economy is setting records, and has a long way up to go….However, if anyone but me takes over in 2020 (I know the competition very well), there will be a Market Crash the likes of which has not been seen before! KEEP AMERICA GREAT.”
Can you pinpoint the moment your presidency turned things around so much that you deserve all credit for the economy? pic.twitter.com/odvFwyU4rs
— Kevin M. Kruse (@KevinMKruse) June 15, 2019