We know the Dow Jones dropped yesterday when President Donald Trump called for tariffs on imports of steel. But did you know the Dow drops almost every time something major comes out about the Mueller investigation?
It’s a surprising thing to learn, and if you don’t believe there is a connection, one company has come up with a way to measure that. It's called the Mueller Risk Index. Mark Rosenberg with GeoQuant suggests the risk associated with the investigation could hurt stocks. Rosenberg told KTRH the deeper Mueller gets, the more the markets don't like it.
“To the extent the market reflects the wider economy; the expansion of the probe would have a negative impact on equity markets and maybe even the wider economy. That said the fundamentals of the economy are still strong,” Rosenberg explained.
The risk index is expected to rise this month before stabilizing in April. And Rosenberg says if you don't by what he's saying, just look at his track record.
“Our software generates political risk indicators for thirty countries on a daily basis. We use them to predict election outcomes, policy changes and political events that impact markets,” Rosenberg said, adding that GeoQuant gets it right more than 75% of the time.