Stock market tumbles after Flynn charges

Author: , Post Date: December 1, 2017

Typically, stocks have sold off on news viewed as threatening to the Trump presidency. But they often recover just as quickly when investors begin to contemplate that even in the event that Trump is somehow forced from office, his likely successor, Vice President Mike Pence, would probably pursue similar economic and regulatory policies without as much drama. Friday was no different as the market processed the Flynn news.

“If this is impacting the chance of the tax package not being passed, then I get a more prolonged and bigger market decline,” said Jim Paulsen, chief investment officer at the Leuthold Group. “However, beyond that, financial markets might believe that even more favorable legislation could be achieved under a more cohesive Republican Party that is simply not possible with Trump in office. Ultimately, a peaceful transition to Pence may be met favorably by the financial markets.”David Kotok, chief investment officer at Cumberland Advisors, said markets “would prefer a less belligerent and non-tweeting replacement for what we have experienced.”


Read the full article at POLITICO’s website:

cumber map
Cumberland Advisors® is registered with the SEC under the Investment Advisers Act of 1940. All information contained herein is for informational purposes only and does not constitute a solicitation or offer to sell securities or investment advisory services. Such an offer can only be made in the states where Cumberland Advisors is either registered or is a Notice Filer or where an exemption from such registration or filing is available. New accounts will not be accepted unless and until all local regulations have been satisfied. This presentation does not purport to be a complete description of our performance or investment services. Please feel free to forward our commentaries (with proper attribution) to others who may be interested. It is not our intention to state or imply in any manner that past results and profitability is an indication of future performance. All material presented is compiled from sources believed to be reliable. However, accuracy cannot be guaranteed.