I imagine this post will be deleted, and that's a shame, but I divested of all American stocks, save one, after the 2016 election. The only American stock I currently hold is Tesla. One of my smallest Canadian holdings has some American exposure. I'd like to hold Tesla for 10 years, and probably will, but I'm scared of the current American political climate. If the Mueller probe concludes there was no collusion, I expect the potential for a substantial up-tick in US stocks. That would be a best case scenario. If the Mueller probe concludes collusion or other major crimes, I don't know how far down American markets will go but I doubt it will be far. I think collusion is mostly priced in, at this point. Does anyone else have a view they would like to share? Is collusion baked in? I'm also worried about Italy. In past years, it was Greece which sent European markets into a major spin but now it seems like Italy is causing a minor disruption. I think Euro markets can weather Italy's exit, and Britain's too, but further Russian expansion will cause it to tilt and Putin seems crazy to me. Meanwhile, Greece is a time bomb waiting to explode again. I have significant exposure to Europe, and it's been a problem in the past but, overall, my Euro stocks have out performed all of my other stocks; that includes Tesla which I bought less than two years ago at $182. Again, any views or opinions on European political instability and the impact it might have on the Euro markets?
Yes, collusion is baked in at this point. The only potential political impact I see on the markets in the near future would be the mid term elections in November. If Republicans maintain control of House look for business as usual. If Democrats take control, probably see some immediate volatility.
I haven't divested. If Mueller gets collusion, that might be an immediate drop but is that really going to affect the economy? Right now I don't see it affecting the economy, so we would bounce back with time. If Democrats take control in mid-term election that could be the beginning of the end of business-friendly policies, but it may not seriously turn until the 2020 election shakes out.
