May 20, 2017

Nick Colas: stocks would rally 3-5% if Trump resigned

What would U.S. stocks do if President Trump suddenly resigned? Based on recent price action, the answer is clear: Rally 3-5%, at least, over a day or two. U.S. equities see through the headlines (like the Comey firing) and essentially believe two things. First, corporate earnings are growing nicely. Second, the Republican-led Congress needs to pass tax reform by the 2018 midterm elections.

~ Nick Colas, chief market strategist, Convergex, May 12, 2017

(See "Here's why stocks could rally if Trump heads for the exit, MarketWatch.com, May 12, 2017.)

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