We didn’t know where it would come from, but we thought it would come — a black swan to take the risk out of the financial markets.
Now we may have it — the renewed Democratic Party effort to impeach President Donald Trump, and reverse the results of the 2016 American presidential election, over alleged wrong-doing pointing out Joe Biden’s obvious corruption dealing with Ukraine while Vice President of the United States.
We don’t think the selloff will be long-term, and we don’t think Trump will be impeached, and certainly not removed from office, so the gogo years of the Trump presidency will continue. However we could see a substantial downdraft if markets believe that will happen.
In economic data today, the S&P/Case-Shiller Home Price Indices (YoY) (Jul) came in at 2.0% vs consensus estimate of 2.2%.
MoM for July the numbers were 0.4% vs 0.3% estimate.