FOX Business’ Stuart Varney argued that the market is strong because investors know Democrats will not get the power to ruin it during his latest "My Take."
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"The president who started this market rally will stay in office," Varney said on Monday. "The impending failure of impeachment is a plus for your money."
Varney noted rapidly rising share prices and week after week of gains for the Dow, S&P, and Nasdaq since late summer.
“Now we can trot out the usual reasons: progress on trade, good profits, a growing economy… but maybe politics are working in the market’s favor as well,” Varney said.
Varney argued that investors can read the political winds. They can see that the impeachment drive is not going well for Democrats and that the Senate will not vote to convict Trump, reassuring them that the president who started the market’s rally will continue to preside over the U.S. economy.
Investors, he suggested, are also looking at the 18 Democrats—not including Michael Bloomberg—campaigning for the 2020 nomination. Less than three months from the first primaries, none of the candidates, Varney noted, has hit 30 percent support on a regular basis.
“The Democrats are having a hard time figuring out who should lead them in the election and there’s a real danger of a split and brokered convention in July. And that means a weakened candidate—good news for investors,” Varney said.
Investors, he argued, don’t want a Green New Deal or Medicare-for-all—they don’t want a wrecked economy.
All bull markets come to an end, Varney conceded, and this one is 11 years old.
“But right now that bull is still running and it’s running because the economy and profits are strong—and because the Democrats will not get the power to ruin it,” Varney concluded.