Commerce Secretary Wilbur Ross says you can kiss the stock market goodbye if the House of Representatives follows through on impeachment.
Continue Reading Below
“It’s 100 percent true,” Ross said on FOX Business’ “Mornings with Maria” in an interview with Neil Cavuto. “Look what the market has done since he came in. Now sure, there are occasional glitches in it, but that’s the way markets are.”
The S&P 500 has rallied 42.6 percent since President Trump's election victory on Nov. 8, 2016.
Trump has made similar comments. In September, responding to a tweet from FOX Business’ Maria Bartiromo, the president said “the markets would crash” if the Republicans launched an impeachment inquiry.
The major averages dipped slightly in the moments following Thursday’s House vote setting procedures for the public phase of that inquiry, but finished ahead of where they were when the vote began. The vote, which was 232 to 196 in favor of formalizing a probe, was mostly along party lines, with two Democrats opposed.
At least one Wall Street heavyweight disagrees with the White House's assessment. On Sept. 25, the day House Speaker Nancy Pelosi announced an official impeachment inquiry against the president, billionaire bond fund manager Jeffrey Gundlach told FOX Business that the process was "more theatrics than anything else."
“I don’t think it’s a real major market issue," said Gundlach, CEO and chief investment officer of the Los Angeles-based DoubleLine Capital, which has $140 billion in assets.
"When it comes to politics, the outcome of the 2020 election is far more important than what will be an unsuccessful and probably not even fully-realized impeachment sort of action."