U.S. Economy Continues To Decline Under President Joe Biden

September 7. 2022

Joe Biden

Economic data in America indicates the nation is going through a financial crisis, even though President Joe Biden does not want to admit it. Everything is being impacted by inflation from real estate to food prices.

Biden's multiple interest rate hikes this year are causing property devaluation all over America, which means many homeowners who started the year with sizeable equity in their property, will enter negative equity (homes worth less than they paid for them and owing more than their mortgages if they try to sell). Biden just cannot get the economy right and is doing real damage.

The stock market keeps tanking, consumer sentiment is down, and many Americans have been removed from the employment rolls after 6-months of being out of work. They are not being counted in the unemployment tally.

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Consumers Feel Worse Now Than They Did During Covid Lockdowns

Sept. 4, 2022 8:00 am ET - The University of Michigan survey of consumer sentiment measures how U.S. consumers feel about their personal finances, business conditions and buying conditions. Recent surveys have shown that consumers have rarely felt more downbeat about all of these measures.

In the past, when consumer sentiment was as depressed as it is today, stocks were in a bear market, unemployment was higher than average or prices were rising faster than usual.

This year, inflation has been near four-decade highs and a main driver of consumer pessimism. The S&P 500 is in a bear market, but up 7% from its 2022 low. Uncharacteristically of periods with low sentiment, unemployment is historically low...

https://www.wsj.com

U.S.-Stock Funds Are Down 17.3% So Far in 2022

Updated Sept. 4, 2022 10:00 am ET - Fund investors might have to concede that 2022 will be forgettable. The average U.S.-stock mutual fund or exchange-traded fund is down 17.3% for the year to date, through August, according to Refinitiv Lipper data. That includes a 3.5% average decline in August, reflecting the stock market’s reaction to Fed Chairman Jerome Powell’s comments that the central bank will keep raising interest rates to fight inflation, despite recession risk.

The advice for fund investors is, of course, to maintain a long-term view. It is unlikely that the stock market—and accordingly, the average stock fund—will be able to post a gain for all of 2022. Meantime, the market’s movements will be all about the Fed and inflation.

The S&P 500 and Dow Jones Industrial Average both fell just over 4% in August, mainly because of the end-of-month declines tied to the Fed; the Nasdaq Composite Index fell closer to 5%...

https://www.wsj.com