* See UPDATES below...
Add this disturbing development involving the Supreme Court to the long list of President Biden's failures -- and national security threats that have formed since he took office -- and you've got a very big problem brewing in the U.S. that is contributing to a high level of uncertainty and a general malaise over future prosperity prospects for its citizens and domestic and foreign investors.
So, how long can Joe Biden survive in 'survival mode?' He may barely survive until his four-year term ends, but it's doubtful that many Democrat members of the House and Senate will when their term expires this November, inasmuch as they've enacted his policies (and have pulled him to the extreme far left on many issues) and are directly accountable to their constituents who are negatively impacted by the fallout of Biden's agenda, especially by out-of-control inflation and a high crime wave in their cities.
Look for a 'red wave' to occur during the 2022 mid-term elections, as a result of President Biden's 'lack of courage' to govern the way he promised in his speech when he was sworn into office on January 20, 2021...as a self-professed centrist and a uniter. No one believes his proclamations anymore...but, I doubt many did in the first place.
Market players have already voted with their money...and, it's not favourable for Joe Biden, his agenda, or the Democrat party...see my post of February 21 for further details on major support levels for the SPX pertaining to its break of its Head and Shoulders neckline at 4200.
The SPX closed at 3851.85 the day of President Biden's inauguration. Most of the gains it made since then have been wiped out this year.
It looks like Biden's promises and agenda (together with his 89 executive orders, 69 presidential memoranda, 254 proclamations, and 47 notices issued, to date...source: Ballotpedia) were hollow, destructive and without merit. Markets have no confidence in his abilities to fix his administration's problems plaguing the country.
And, from his recent rhetoric, it appears that he intends to double down on his disastrous policies, instead of dramatically changing course.
Brace yourselves, America! I think that the worst is yet to come! 😕
By the way, market wealth destruction began with technology stocks after they peaked in early November 2021, as shown on the following weekly comparison chart of the FNGU ETN basket of tech stocks with the SPX.
The widening spread between these two was precipitated by a surge in inflation, as outlined in the following WSJ article.
Continued weakness in tech stocks, along with higher inflation numbers and further monetary tightening measures by the US Fed, will, no doubt, negatively impact the SPX in the weeks/months ahead.
Look for high volatility to continue to whiplash markets in both directions, as I described in my last post.
* UPDATE May 11...
YoY CPI data released today shows that, even though inflation moderated slightly over the past month, it's still sky high at 8.3% compared to where it was during the height of the 2008/09 financial crisis and market crash (and still at 40-year highs), as shown in the graph below.
Furthermore, inasmuch as explosive housing inflation has not yet been fully baked into these numbers, expect CPI prints to increase incrementally over the next months, possibly into 2023.
Therefore, I'll stick with my assessment that whipsaw volatility will remain with markets until then, and longer, unless President Biden dramatically reverses course on his economically and socially destructive, restrictive and punative socialist policies and agenda.
A breakdown of today's CPI data is provided in the following ZeroHedge article.
By the the way, with the VIX not yet at extreme levels, it's not indicating that the SPX has reached capitulation level yet.
Likewise with the VXN and the NDX.
* UPDATE May 12...
If this were former President Trump, he'd have been impeached by both the House and Senate months ago for reckless, destructive, and nonsensical actions taken since his first day in office, such as these latest ones proclaimed by President Biden.
When will the grownups step up to intervene in such irresponsible behaviour that threatens America's national security?
The U.S. is being turned into a Third World country where even Mothers can't feed their babies because there has been a critical shortage of baby formula since February, with no end in sight!
* UPDATE May 19...
No capitulation yet in equity markets (SPY monthly)...
More turbulence ahead...
Americans are not happy with Joe Biden...
* UPDATE May 20...
Biden's 'success' is a mess...
Democrats and Joe Biden's formidable foe...former President Donald Trump...
* UPDATE May 23...
President Biden and Democrats (including Democrat city Mayors and state Governors) have no clue on how to handle rampant and escalating crime...so why do people keep electing them???
More self-inflicted chaos and controversy...another major faux pas uttered publicly by President Biden has his staff cleaning up his remarks, yet again...remarks that could, potentially, spark a military conflict between China and the U.S.
The question is, did he literally mean what he said? If so, his staff is lying and he did not "mispeak." If not, he lied.
No one knows the truth between what he says in his public statements and declarations, and what his staff, subsequently, walks back via press releases. There have been numerous instances since he was inaugurated...far too many.
national security issue?
Donald Trump would have been impeached by now for all of Joe Biden's reckless blunders, if he were President.