Stocks Keep Rising 📈

Table of Contents

Stocks Keep Rising

On Wednesday, the United States House of Representatives held the 2nd impeachment trial for President Donald Trump. And last Wednesday, riots broke out in the U.S. Capitol. Over the past week or so, there has been a significant amount of political turmoil in Washington. The situation in D.C., combined with the pandemic’s economic consequences, is a one-two punch that not many people expected.

Financial markets have been practically unfazed by the turmoil. On January 6th, the day of the riots, the Dow Jones Industrial Average closed at a record high. And yesterday, the Nasdaq Composite and the S&P 500 closed slightly higher. So, through all the political chaos, why do stocks keep rising and touching all-time highs?

Some argue that investors have long been aware of the United States’ political crises and still see the U.S. markets as a haven during periods of economic uncertainty. The U.S. still has the largest economy globally, and the dollar is still the world’s reserve currency, which is undoubtedly an advantage for the U.S. economy amid so much uncertainty. 

GeoQuant is a company that uses computer science to calculate and analyze political risk and their CEO, Mark Rosenberg, thinks investors have yet to be spooked by polarized U.S. politics. GeoQuant’s political risk index showed a 0.9 correlation with the S&P 500, which means stocks tend to boom when measures of political risk increase.

It’ll be interesting to see if the markets stay strong into the new year.

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.

Share:
More Posts
Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.