Biden Sees Worst Half-Year Market Since Nixon Administration

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.

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