Mubasher: The possible impeachment of Trump has rarely been discussed, partly because it is not yet clear whether Democrats will seek impeachment after controlling the House of Representatives in 2019.
Markets are mainly focused on other risks such as the Federal Reserve interest rate hikes and escalation of USA-China trade tensions, according to a CNBC report.
Impeachment is a process whereby the House can accuse a civil official, including the president, of an "impeachable" offense with a simple majority vote. Then, the accusation would then move to the Senate, which have the power to convict the official or not.
Impeachment will likely cripple Washington's ability to get things done — that in itself is a big risk for businesses, said Steve Okun, senior advisor at McLarty Associates.
"Democrats will do something on impeachment next year," he told CNBC on Wednesday, referring to comments by Jerry Nadler, the expected chairman of the House Judiciary Committee, that Trump may have committed "impeachable offenses" if he's found to have a hand in paying hush money to several women.
Moreover, Justice Department special counsel Robert Mueller is expected to submit a report to the attorney general as early as mid-February of his investigation into whether Russia interfered with the 2016 presidential election.
Trump's trade policies, as well as his focus on immigration rather than the economy, made the markets nervous, as Trump's insistence on getting funding for a border wall between the U.S. and Mexico resulted in a partial government shutdown, Okun added.
Okun predicted that US funding gap would last until 7 or 8 January.