Many experts have attributed the recent Dow Jones Industrial Index (DJI) slide to centrist republicans losing faith in POTUS and discussing impeachment. While impeachment is a risk - there is a more sullen reality to why the US markets reacted: Washington cannot work under the circumstances. It is very clear, the gridlock everyone hoped had moved on is back in a political bottleneck with more and more scandals piling up everyday. The current administration is on-and-off crisis mode and openly running their administration with crisis communication tactics to cover the “shoot from the hip” presidency. It is worth noting that the market did recovery quickly, but the correction - or slide - was still the most significant since the election in November. Other factors are in play as well, Soros and his hate for Trump and even the president’s market savvy money manager friends could look to influence numbers through complex trade positions and derivatives, discombobulating the ethical fabric of American economic data.
All of this invigorates newly created enemies inside the permanent government and that has affected the perceived political capital available. Without a doubt this is the barometer we can look to regarding market corrections for the current administration - despite volatility indexes still lagging. POTUS went after an Obamacare-AHCA takedown as quick as he could and it was a failure. That said a second vote was arranged and it passed. However the house has yet to send the act (AHCA) to the senate. Why? The house is waiting on its own bottleneck to clear as they have existing internal politics with each other and this one issue surrounds the nonpartisan Congressional Budget Office (CBO). There is a slow down and there is gridlock and it is largely from Trump’s personal drama involving his character before presidency, his Russian business ties and his ongoing obscuring - or covering up - of an investigation.
The upcoming foreign trip - the president’s first - is a make or break opportunity. The president needs to stayed focused on competency and long-term planning verses his last 100 plus days of tactics. Simply put, POTUS is busy squandering the presidency with scandals, amateur practices and poorly planned showbiz scenes. If Trump cares for America he needs to be pushed to the back and allow for economics and financial markets to remain healthy and grow so as not to be corrupted by the intense political fallout.