Is the Biden market still good for stocks?
2022 hasn't been good for stocks. But the Biden market is still up 18% A version of this story first appeared in CNN Business' Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.
How has the NASDAQ performed since Biden takes office?
The Nasdaq's performance has been less spectacular, especially in recent weeks, when rising bond yields helped push the index into a correction. Still, the tech-heavy index has gained over 6% since Biden took office.
Did Biden brag about stock market hitting 'record after record after record'?
At the briefing, White House press secretary Karine Jean-Pierre was questioned on the economic trouble by Peter Doocy, Fox News ’s correspondent. "President Biden once bragged about the stock market hitting ‘record after record after record on my watch,’” Mr Doocy said, quoting the president. “How about now?"
Is Joe Biden buck-passing on inflation?
That kind of buck-passing by Biden has become a predominant theme of his administration. Meanwhile, with inflation fears worsening everything, Biden once again chose to mislead people. Joe Biden: "There's nobody suggesting there's unchecked inflation is on the way.
What is the change in direction of Biden?
A change in direction. The election of Joe Biden as President marks a change in control of the administration from Republicans to Democrats. Just as important, however, is the makeup of Congress. Given the narrowness of the partisan advantage in Congress, “it’s not a foregone conclusion that major changes will occur even with Democrats controlling ...
What is the Biden administration focused on?
Since inauguration in January 2021, the Biden administration has been focused on implementing policies and programs that represent a shift in direction from the previous administration. What changes have occurred and what more can be expected?
How much has the S&P 500 gained in 2021?
Through the first five months of 2021, the S&P 500 gained 12.6 percent. Small-and mid-cap stocks have performed even better.
What is the Federal Reserve's commitment to the economy?
Interest rates and the economy. The Federal Reserve (the Fed) has demonstrated its commitment to help keep the economy on track through this pandemic period. This includes adhering to a so-called zero interest rate policy for the foreseeable future.
Is Biden proposing a public option for health insurance?
Expanded healthcare access – President Biden is proposing the addition of a “public option” for health insurance purchased through the Affordable Care Act and allowing Americans age 60 and older to enroll in Medicare.
Is the mid cap market recovering?
As anticipated, mid-cap and small- cap stocks have also benefited from the economic recovery. This is in contrast to the environment for much of 2020, where a select group of large-cap stocks dominated the market.
China tries to avoid a major slowdown
China keeps slashing lending rates as authorities ramp up their efforts to stave off a sharp economic slowdown.
Why Netflix is raising prices
Netflix (NFLX) reports fourth quarter earnings on Thursday and all eyes will be on the streamer’s subscriber growth. But there’s also something new for investors and industry observers to wonder about: Netflix (NFLX) raising its prices.
Up next
American Airlines, Baker Hughes, Travelers and Union Pacific report earnings before the opening bell. Netflix is up after the close.
Why are investors not worried about the Biden tax hikes?
A third reason investors aren’t worried about the Biden tax hikes is they wouldn’t necessarily change the incentive for investors to buy stocks. While the capital gains tax hike would, in fact, lower returns to wealthy American ...
What is the corporate tax rate for Biden?
Biden wants to raise the corporate tax rate from 21% to 28%, but Congress will probably only go as far as 25%. The corporate rate used to be 35%, and stocks still went up most of the time, so a 25% rate seems relatively benign.
What stock indexes hit record highs after Biden's plan?
The day after Biden unveiled his American Family Plan—and the tax hikes he wants to pay for nearly $2 trillion in social-welfare spending—the S&P 500 and NASDAQ stock indexes hit record highs. They weren’t necessarily cheering for Biden’s plans, and were mostly driven upward by earnings news.
What is the fourth factor unrelated to Biden?
There’s a fourth factor unrelated to Biden, which is the Federal Reserve. The Fed’s easy-money policy has probably goosed stocks more than anything else, one huge reason for the remarkable 83% run-up in stocks since the market bottomed out last year.
Will the stock market survive Biden?
The stock market will survive Biden. Most of President Biden’s big proposals are now on the table, and stock market investors have concluded everything will be okay. They won’t necessarily say that. Big battles are underway over raising the corporate tax rate, the capital gains tax rate for millionaires and the top income tax bracket.
Does the Fed backstop Biden?
The Fed isn’t doing this for Biden, but the Fed backstop probably gives Biden more margin for error. None of this guarantees stocks will avoid a correction or even stay positive for the rest of the year. But it strongly suggests there won’t be a plunging stock market screaming at Biden to stop raising taxes.
Who is Rick Newman?
Rick Newman is the author of four books, including " Rebounders: How Winners Pivot from Setback to Success. ” Follow him on Twitter: @rickjnewman. You can also send confidential tips, and click here to get Rick’s stories by email. Read more:
Does Biden have a coherent message?
Of course, Biden’s lack of a coherent message also eschews the fact that the vaccine and natural immunity protect against the Delta variant when talking about symptoms and the risk of serious illness and death.
Is it capitalism's fault that the stock market is tumbling?
It is not capitalism’s fault that the stock market is tumbling. Rather, it’s the fault of an incompetent, overbearing government that may or may not arbitrarily decide to crush the economy again. That kind of buck-passing by Biden has become a predominant theme of his administration.
A Change in Direction
Interest Rates and The Economy
- The Federal Reserve (the Fed) demonstrated its commitment to help keep the economy on track as the pandemic continued. It maintained a so-called zero interest rate policy throughout 2021, and for much of that time, Fed chair Jerome Powell insisted that it would remain in place throughout 2022. The Fed also maintained a policy of purchasing $120 billion in Treasury and m…
The Market’S Response
- The markets benefited from a strong economy in 2021 that kept corporate profit growth, a major driver of stock price activity, moving in a positive direction. For the year, the S&P 500, a benchmark of large U.S. stock performance, gained 28.7%. Other parts of the market also performed well but modestly lagged the returns of large-cap stocks. The S&...
Positioning Portfolios For 2022
- Regardless of policy initiatives that are put forward in 2022, it’s important to keep a big-picture perspective. U.S. Bank investment strategists still envision a two-track investment horizon. We remain in the first horizon, characterized by a recovering economy and ongoing concerns being raised by the COVID-19 pandemic. At some point, we should evolve into the second horizon, clos…