Is 2019 the new 1998?
According to Fritz Folts, chief investment strategist at 3Edge, the two have quite a bit in common.
"It's kind of eerie in some respects. So in 1998 you had a resilient economy, a very long economic expansion. You also had a stock market that was rising and what we had and obviously the impeachment was going on with Bill Clinton, but you also had three interest rate cuts by the Fed who are concerned primarily because of the emerging market currency crisis," said Folts.
"They cut interest rates three times. Fast forward to 2019 we have a strong economy, we have a rising market. And, oh, by the way, we had three interest rate cuts by the Fed this year," he continued. "And so the interesting thing is market historians point to 1998 to say, well, we don't think those cuts were necessary. And they led to an inflation of an already rising equity market, which ended badly in the crash of the tech stock bubble. So is that what we might be in store for in the future? And only time will tell."
Watch the full video above to see whether or not Folts thinks that investors should rip a page out of the history book to better understand the possible impact of impeachment proceedings on the market.
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