Ruth Bader Ginsburg Passed Away
The U.S. political landscape was turned upside down Friday evening when news broke that Supreme Court justice Ruth Bader Ginsburg passed away. This news is significant for the markets in many ways and across many time horizons.
In the short term, the debate about when and how to replace her has instantly become a central talking point in the upcoming election. Trump’s party currently controls the senate by a three-seat majority, but political backlash for certain GOP senators could make it difficult for the president to get his nominee confirmed. How voters see her legacy and what should be done with the court will influence who is in the White House next year and which party controls the senate.
In the long term, the choice of the judge that takes her place could shape America for many years to come. The Supreme Court currently has a 5-3 conservative majority. A conservative appointment would cement a conservative majority, while a liberal appointment would leave moderate justice John Roberts as the swing vote.
The Supreme Court is often highlighted for its impact on social issues, but in the next decade it could have a particularly large impact on financial markets. One area where it could have a particularly large impact is on rulings in cases involving big tech companies.
The politics of RBG’s passing will be an important topic for the next few months. Many aspects of American life, including the markets, will be changed depending on her replacement.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.