This essay The Stock Market has a total of 973 words and 5 pages.
The Stock Market
There are many factors that affect the stock market. So many, in fact, that it is immeasurable. There are financial factors, such as corporate profits and interest rates which affect the market, and other factors. Factors such as involvement in war, foreign affairs, trade agreements, and political events. How do these other factors affect the stock market when there is seemingly no connection to finance?
Many of these other matters affect the economy, such as trade policy, which in turn affect corporate investment. When a policy is implemented which affects the economy, corporations react accordingly. This reaction can improve the financial position of companies, or it can make it worse. Investors will in turn react to these changes by selling stock or buying into the market.
Many times, investors will react to policies and events before there is a corporate reaction. If an investor thinks that a certain event will affect corporate profits, he may react before the corporations do--in order to limit losses or to gain more. This event may not have any merit as one that would affect the market, but the investor will react on a "hunch". Let’s examine the Clinton/Lewinsky scandal in discussing this matter.
Did the Clinton/Lewinsky scandal have an effect on the stock market? There may not be a clear answer to this question. The popularity of the scandal in the news may have caused some investors to react, but how? Did they sell off their stock, and if so, why?
Some investors may have thought that since perjury and obstruction of justice may be impeachable offenses, a presidential impeachment would be in the near future. The president supports and opposes many different economic policies. If this president is impeached, then certain policies may no longer be favored by the new president. Of course the new president would be Al Gore, who would support and oppose the same policies, but he may not have the congressional support which Clinton enjoyed to implement these policies.
Perhaps an investor thought that the scandal would cause presidential support to deteriorate in congress, limiting the president’s power. This could have been thought of as a hindrance to the president’s ability to impose economic and trade policies which affect corporate profits.
The scandal could have had psychological effects on investors, causing them to back out of the market. There may have been a reduced interest in investing due to the widespread media coverage of the scandal. It is inevitable that some investors thought of numerous consequences of the scandal which may affect the market, and acted on a whim.
There are many possibilities of investor reaction to the scandal. But did these reactions dramatically affect the stock market? Let’s examine the stock market in 1998 and events in the scandal to try to determine the answer.
The 1998 stock market has been characterized as a volatile market with rapid changes and record highs. The Clinton/Lewinsky scandal surfaced around the beginning of 1998. After this point, the Dow Jones Industrial Average went straight up towards record highs, with no significant corrections until April.
On April 1, 1998, Judge Susan Webber Wright dismissed the Paula Jones case. Grand Jury testimony continued throughout the month. On April 18, US News and World Report says retired Secret Service officer Louis Fox testified before the grand jury that during a visit by Lewinsky to the White House in the fall of 1995, Clinton told him, "Close the door. She’ll be in here for a while." This was a significant revelation in the saga, because the agent was the first credible witness to suggest presidential wrongdoing. However, at this point in time, the stock market has just about leveled off for about a month. The next downturn would come in June, followed by a significant month-long downturn from July to August.
Grand Jury testimony continued throughout June with no significant events, except for the beginning of Linda Tripp’s testimony on June 30. Tripp’s testimony continues into the beginning of July. On July 28, a full immunity agreement was worked out for Monica Lewinsky. Throughout the month of July, there is a significant downturn in the stock market, which drops over 1200 points by the end of the month. This downturn, however, has been attributed to the turmoil in Asian markets.
Topics Related to The Stock Market
Lewinsky scandal, Finance, Money, Economy, Monica Lewinsky, Linda Tripp, Stock market, Bill Clinton, Market trend, Paula Jones, Investor
Essays Related to The Stock Market
The affects of tabloids on politicsThe affects of tabloids on politics In today’s society the media usually dictates the way that we view public figures. These figures include anyone who is in the public eye whether it between musicians, actors, athletes or politicians. Politicians spend much of their time in the spotlight due to the fact that their public exposure, or over-exposure, is usually what is responsible for their current position in the political scheme. Tabloids are part of our American popular culture. Whether we are
Clinton Sex ScandelClinton Sex Scandel The Clinton Sex ScandalRare is a person that crosses the path of the White House without some emotionof envy or awe. This building epitomizes world leadership and unprecedentedpower. This renowned leadership may be the only association made by certaincountries, while in the United States many see an other significance:Watergate, Whitewater, Kennedy\'s brutal and mysterious assassination, andtoday, Clinton\'s zippergate scandal. When the President of the United Statestakes oat
President John F. KennedyPresident John F. Kennedy There is something about John F. Kennedy. Could it be his charisma and charm that still entrances America? Maybe it is his elevated status as a pop culture icon that bedazzles most American citizens. It might be the martyr status he attained through his tragic assassination that makes American culture revere him as a President. Whatever the reason is that defines John F. Kennedy as probably one of the most beloved Presidents in American History; one assumption by many i
Presidency in TroublePresidency in Trouble Joshua Lang Civics 1st Hr. In this report I will be answering questions like should Clinton be impeached or should he resign. Also I will have other peoples opinions on our president. I will also give you my opinion on the president. Right now our president is in a bit of trouble for lying in the Grand Jury about the Lewinsky sex scandal. The reason he is in so much trouble is because when you lie in the Grand Jury that is perjury which then could impeach Clinton. What are
The Kenneth Star ReportThe Kenneth Star Report The Kenneth Starr report on President Clinton has been going on for awhile now. This is not a one-time incident for Clinton. Scandals involving the president have been appearing as far back as he was governor of Arkansas. His newest scandal involved a White House Intern named Monica Lewinsky. It wouldn’t be such big news by itself but she was involved in a grand jury trial involving the president. In which she testified in favor of the president. Everyday new skeletons fr
American Has Lost it’s HonorAmerican Has Lost it’s Honor America has always been the envy of the world due to our system of government with its leadership that has traditionally upheld the highest code of honor. In years past America’s leaders were expected to maintain high personal ethics and morals as well insure that the countries economy and standing in the world are maintained at a level that is acceptable to the American public. Recent events have highlighted the fact that honor and ethics no longer rule America. Pop
Similarities and Differences Among All-News CablesSimilarities and Differences Among All-News Cables Networks Similarities and Differences 1 Running head: SIMILARITIES AND DIFFERENCES AMONG ALL-NEWS CABLE NETWORKS: CNN, MSNBC, AND FOXNEWS CHANNEL SIMILARITIES AND DIFFERENCES AMONG ALL-NEWS CABLE NETWORKS: CNN, MSNBC, AND FOXNEWS CHANNEL Deborah A. Neals Barry University Similarities and Differences 2 Successful programming is vital to a television property since it spells the difference between profit and loss. Unpopular programming results in
ARE LIBERTY AND ORDER AT ODDS?ARE LIBERTY AND ORDER AT ODDS? In the dictionary “liberty” is defined as “the right to act or believe as one chooses.” In that same dictionary “order” is described as “a condition in which freedom from disorder is maintained through established authority.”(Encarta Encylopedia, 1998) When these two definitions are compared and an incident occurs like the attack on demonstrators by police in New York City’s Central Park the question “Are liberty and order at odds?” is answered simply by yes. There
Bill ClintonBill Clinton I agree with the statement that despite the recent scandal with Monica Lewinsky, President Clinton can still be a role model for young people. There are two types of role models that can be described, one can be like Mother Teresa and the other has faults but despite their faults they are still a good role models, like President Clinton, because he has done well for our country, he cares about the people and his family, and finally people have affairs every day of their lives. First
Presidential ImpeachmentPresidential Impeachment The Senate opened the first presidential impeachment trial in more than 130 years Thursday, sitting in judgement on whether President Clinton should be removed from office for high crimes and misdemeanors. Standing at their desks in the Senate chamber, the 100 senators raised their right hand to take their oaths as jurors from presiding officer Chief Justice William Rehnquist. Rehnquist had been sworn in minutes earlier by Senate President Pro Tempore Strom Thurmond as t
Should the President be Impeached?Should the President be Impeached? The most controversial headlines today focus on the President of The United States, Bill Clinton. These headlines have nothing to do with his Foreign policies, deficit control, or the United States budget spending rather focus specifically on the Monica Lewinsky sex scandal and the impeachment hearings. Currently President Clinton faces impeachment hearings. Due to certain allegations caused by the so-called, sex scandal. In the history of the United States o
The Stock MarketThe Stock Market There are many factors that affect the stock market. So many, in fact, that it is immeasurable. There are financial factors, such as corporate profits and interest rates which affect the market, and other factors. Factors such as involvement in war, foreign affairs, trade agreements, and political events. How do these other factors affect the stock market when there is seemingly no connection to finance? Many of these other matters affect the economy, such as trade policy, which
The InternetThe Internet Kenneth Starr, the independent counsel for the investigation of William Jefferson Clinton, Newt Gingrich (R-GA), the Speaker of the House of Representatives, and Steven Case, the Chairman of the Board of American On Line should not be prosecuted for (a) corrupting the morals of minors because they allowed the grand jury testimony of Monica Lewinsky to appear on the internet where it has been accessible to minors or for (b) violating the principle of separation of church and state by
President ClintonPresident Clinton Last year, President Clinton’s State of the Union address came just as the Monica Lewinskyscandal was exploding into public view. Clinton nevertheless gave a rousing speech, memorable for his call to “save Social Security first.” This year, the address came as Clinton stands trial in the Senate. Once again, he avoided any mention of his political troubles, instead stressing that the country’s prosperity must be used to prepare for the burden of a rapidly aging population in th
ImpreachmentImpreachment The verb impeach as defined by Webster\'s Third International Dictionary is to cause an official to be removed from office because of conviction of impropriety, misdemeanor, or misconduct while in said office. The right to impeach public officials is secured by the U.S. Constitution in Article I, Sections 2 and 3, which discuss the procedure, and in Article II, Section 4, which indicates the grounds for impeachment: the President, Vice President, and all civil officers of the Uni