Harvard Trained Economist: Trump’s In Trouble And This Will Be Bad For The Economy And Markets

Harry Dent explains how the cycles are lining up that could result in President Trump resigning in August, or September, 2019. Here are the details…

by Harry Dent of Economy & Markets

Whether you like Trump or not, one thing is clear: He’s in trouble.

Only his strongest supporters seem to still want him around. They elected a non-politician to change the system. To them, he’s doing just that.

They’re not as concerned over his contradictions and the growing legal testimony against him, even if everyone else is.

After Manafort’s conviction on eight out of 18 counts, and Cohen’s guilty plea that stated Trump did direct him to make payments that impacted the election, Trump’s disapproval ratings are the highest ever for him at 60%, with 53% strongly disapproving.

That’s higher than any president since 1948.

More troublesome than that, 63% support the Mueller investigation with a majority at 52% strongly supporting it. That means there will be hell if Trump fires him.

Trump’s Loss of Support

Out of the 49% in support of Congress beginning the impeachment proceedings, 57% are women. It’s not much of a surprise considering the videos and recordings that have surfaced, as well as the Stormy Daniels scandal…

And yes, this all does – and will – have an effect on the economy and markets at some point.

But Democrats might want to be careful about an outright impeachment move. There’s 46% against that… do they really want Mike Pence in place of the Donald? Think about it!

Perhaps least shocking of all is that 43% feel like corruption in Washington has increased since Trump won the presidency. Only 13% feel it has decreased.

So much for draining the swamp.

Out of it all, 66% say Trump shouldn’t pardon Manafort.

And 18% say he should.

Even the one juror that saved Manafort the 10th out of 18 counts warned Trump not to pardon him.

Support for the Donald is strongest when it comes to handling the economy. Still, that’s only 45% favorable versus 47% unfavorable.

The Watergate Parallel

Trump’s growing impeachment issues are following Nixon’s Watergate on an almost exact 45-year cycle.

I talked more on this point last Friday.

Watergate erupted during one of our biggest cycles. John Dean claimed Nixon approved the cover-up in June 1973. That’s comparable to Cohen implicating Trump in the sex scandal payments in August – 45 years and two months later.

However, there’s not been any major stock market reaction yet…

Before Dean’s testimony, John Mitchell was implicated and Nixon’s two top aides – H.R. Haldeman and John Ehrlichman – resigned.

The market finally reacted abruptly with the “Saturday Night Massacre” when Nixon fired the Special Prosecutor on December 18, 1973, out of desperation. In the already economically charged crash of 1973-74, the worst came between then and October 1974, two months after Nixon was forced to release his tapes and promptly resigned in August 1974.

If we mirrored this rough timeline, Trump fires Mueller between December and February, and could be forced to resign between August and September 2019.

September 2019 is also the anniversary of the 90-year Great Reset Cycle that saw the greatest crash in U.S. history from September 1929 to July 1932. I’ll be talking more about that in the September issue of The Leading Edge.

It was Trump himself that just said if he is impeached, the markets will crash.

I’m not saying that this will happen, but we would all be fools to ignore this growing political challenge that parallels Watergate.

If these events accelerate sooner rather than later, we could see stocks top in the next few months rather than more like around September 2019 on the powerful 90-year cycle.

And the same goes for the China trade war, if it continues to heat up instead of being resolved. Trump has the leverage on them, but they appear to be as stubborn as he is.

Keep in mind that polls show the Democrats have the widest advantage in mid-term vote preferences – 52% to 38% – since 2006 when they took over both houses.

I doubt the markets like that either.

Follow me on Twitter @harrydentjr