The Biden economy keeps setting new records making it clear that he will go down in history.
Stocks fluctuated on Wednesday, after the major averages made a failed attempt at a bounce in the previous session, and as the market prepares to close out the worst first half of the year since 1970.
The S&P 500, which is down about 20% in 2022, is on pace for its worst first half of the year since 1970, when the index lost 21.01%.
The news just keeps getting worse.
The S&P 500 officially entered a bear market last week, falling more than 20% from its Jan. 3 record finish.
“We have been and remain in a ‘de-risking, defensive and de-rating’ mindset for 2022, as Fed hikes in the current downturn should create collateral damage, leading us to adopt a bearish stance on U.S. Consumer, Financials and Small-caps,” said Manish Kabra, Societe Generale’s head of U.S. equities, in a Tuesday note. “But the committed fight against inflation looks set to trigger a domino effect, with the Housing and Credit markets looking like the next dominos to drop.”
If the Fed fails to get a grip on prices, a 1970’s style inflation shock followed by a recession could push the S&P 500 SPX, -0.07% down by another 33% from its current level to trade at 2,525, Kabra said.
The S&P 500 falls on an average of 33% during a typical recession, but “the current 24% drop in equities suggests we have discounted 72% of an average recession (i.e. a 72% recession probability is priced in),” according to Société Générale’s report. “At 3,200 the S&P 500 will fully discount a typical recession.”
But according to Joe Biden, it’s all good.
In a Wednesday appearance on the ABC late-night show “Jimmy Kimmel Live!,” President Joe Biden made a dramatic claim about the US economy – and repeated himself for emphasis.
“Look, here’s where we are. We have the fastest-growing economy in the world. The world. The world,” Biden said.
If we “grow” anymore, there might not be an economy.