There isn’t any doubt that Biden is the Cousin Eddie of politics along with his presents that carry on giving. Like rampant inflation, hovering meals, gasoline and diesel costs, and Pelosi/Schumer’s serving to hand in creating worth controls that can kill potential cures for sicknesses.
Along with rampant 40-year highs in inflation, now we have the Clark Griswold of the financial system, Fed Chair Jerome Powell, slamming his foot on the financial breaks to fight inflation created by Biden’s power mandates and reckless Federal spending (just like the aforementioned, laughable “Inflation Discount Act.”
So, Biden helps creates huge inflation and Powell and the Gang counterattacked by elevating their goal fee with extra to return (not less than till Could 2023). And with the implied Fed Funds fee hovering (crimson line), we’re seeing the FANG shares (Fb or Meta, Amazon, Netflix and Google) falling extra quickly (white line) than the S&P 500 index. Which can also be falling like a rock (yellow line). All that is occurring as M2 Cash YoY crashes and burns.
How about development versus worth underneath Cousin Eddie and Clark Griswold? The Vanguard Progress ETF and Vanguard Actual Property ETF are plunging with Fed tightening (crimson line). Vanguard’s Worth ETV (yellow line) is down too, however not by as a lot.
Sure, Washington DC elites. The present that retains on giving … dangerous issues.
Due to my former GMU scholar Andrew Edwards for the Cousin Eddie suggestion!