Monday, November 18, 2024

Forbes: S&P To Crash More Than 40%?

We believe Chair Powell's Fed sees inflation as a real risk - no - a massive threat due to possibility of persistent, sticky inflation - the kind that resulted in an almost 50% drop in S&P 500 from 1972 to 1974

Posted by Corky at 04:04 PM | 20 COMMENTS | permalink

More

How much will that hurt? Well, the combined market cap of S&P 500 constituents is roughly $45 trillion. So a 50% decline in the index would mean a loss of more than $20 trillion in value.

Comments

"To make matters worse, persistent inflation combined with high interest rates hurt smaller companies the most - magnifying the impact on the small caps index Russell 2000.

Why is that?

3 ingredients: 1. Tariffs. 2. Deportation. 3. Low Taxes (on billionaires, not you, buddy!)

In combination, this is a combustible mixture that'll make it difficult for the Fed to fight an inflation spike in coming months, and running into 2025 as the Trump presidency kicks off.

Of course, Trump might not implement policies around tariffs, deportations, and lower taxes that he promised. Or, let's hope they're not as severe as he's promised on the campaign trail.

But if he does, inflation will head north in a hurry.

The rules are simple. Higher tariffs will take cheaper goods out of the market. Prices will rise.

Mass deportations of illegal immigrants sounds reasonable - after all, they're illegal immigrants - except it'll make cheaper labor unavailable. On average, the price of services will go up."

more at the link

#1 | Posted by Corky at 2024-11-18 04:09 PM

Forbes: S&P To Crash More Than 40%?

So you're saying there may be some bargains out there in a little bit?

#2 | Posted by censored at 2024-11-18 04:58 PM

Yep!

And if you have some Saudi families or Peter Thiel or fElon Muskrat funding you, there's money to be made.

On the misery of others, but hey.

#3 | Posted by Corky at 2024-11-18 05:37 PM

I do want to point out to the magat scum that the experts on the economy find that if and when ------- economic policies are inflicted on the world that those making under $49K will be "net losers"

Congrats.

I hope you get everything you voted for.

#4 | Posted by truthhurts at 2024-11-18 06:19 PM

A month before the elections the Klown Kar told everyone inflation was flat, the economy was rocking it and the market was fire.

Another few reasons you lost.

#5 | Posted by lfthndthrds at 2024-11-19 04:15 PM

InFlAtION iS TrAnsITOry!
- corky

#6 | Posted by oneironaut at 2024-11-19 04:51 PM

#5 | POSTED BY LFTHNDTURDS

Trump plans to destroy this America so thoroughly, you'll be begging for today's economy.

#7 | Posted by ClownShack at 2024-11-19 04:59 PM

#6

It's your mind that's transitory.... you want us to believe you rather than Forbes' best economic team?

"This isn't going to end well.

Here's A Question

When things are bad, what do you expect Trump to do? Blame everyone else, or change his course on taxes, deportation, and tariffs?

There's certainly hope that his cabinet and loyalists will be able to sway his view into easing inflationary policies in the event they create spiking inflation before the U.S. economy plunges into a recession.

But if the easing does not materialize or comes into play too late, how bad can things get if there is another recession?"

from the thread article

#8 | Posted by Corky at 2024-11-19 05:32 PM

But if the easing does not materialize or comes into play too late, how bad can things get if there is another recession?"

from the thread article

#8 | Posted by Corky at 2024-11-19 05:32 PM | Reply | Flag

No one with a functional brain cell left in their head thinks we're out of the woods. Nothing is magically going to make our financial problems go away over night. But, as I've already pointed out, people voted to change course. Because the current trajectory of flooding the country with undocumented immigrants and adding $1 trillion to the mounting debt ceiling every 3 months is retarded. All of you who thought leaving the border wide open for anyone/everyone to just walk right in are a huge part of the problem. IT took it's toll on inflation of goods and services and also housing. Census' are conducted for many reasons but most profoundly for planning. The democrats are now ignoring these basic concepts of what keeps our country afloat by choosing "joy" and free money for buying a home as a solution.

#9 | Posted by lfthndthrds at 2024-11-20 01:31 PM

#9 | POSTED BY LFTHNDTURDS

Bit of advice, since it's obvious you haven't a clue.

It's best to keep your ignorance to yourself, instead of exposing your stupidity for us all to witness.

#10 | Posted by ClownShack at 2024-11-20 01:38 PM

how bad can things get if there is another recession?"
#8 | POSTED BY CORKY

We're about to find out.

#11 | Posted by ClownShack at 2024-11-20 01:40 PM

Bit of advice, since it's obvious you haven't a clue.

It's best to keep your ignorance to yourself, instead of exposing your stupidity for us all to witness.

#10 | Posted by ClownShack at 2024-11-20 01:38 PM | Reply | Flag

"for us all to witness" LMAO

All 9 of you fkkking -------?

#12 | Posted by lfthndthrds at 2024-11-20 02:03 PM

We're about to find out.

#11 | Posted by ClownShack at 2024-11-20 01:40 PM | Reply | Flag:

I assume you're referring to the "robust" economy the Dementia Chief is about to pass on in Jan 2025?

#13 | Posted by lfthndthrds at 2024-11-20 02:04 PM

Lose your documentation in Matamoros and let us know if you can just walk across the border.

#14 | Posted by mattm at 2024-11-20 02:05 PM

I wonder what documentation this guy had to show.

x.com

#15 | Posted by lfthndthrds at 2024-11-20 02:21 PM

#15

Moron Alert... immigrants are much less likely to commit crimes than are citizens in this country.

But hey, that's something you aren't familiar with; a fact.

#16 | Posted by Corky at 2024-11-20 02:28 PM

Xenophobe gonna xenophobe.

Lfthndturds is here to prove he's the very stereotype of a Deplorable Trumping MAGAt.

#17 | Posted by ClownShack at 2024-11-20 02:39 PM

For the record, I got out October 8th.

#18 | Posted by Danforth at 2024-11-20 06:43 PM

This is the end goal of fElon...trash the economy, trigger a massive depression, send stock values into the crapper so he can swoop into buy them up on the cheap. Vulture capitalism that will decimate the middle class retirement accounts.

The morons will never learn that billionaires DON'T CARE ABOUT THEM.

#19 | Posted by Nixon at 2024-11-21 08:42 AM

No one with a functional brain cell left in their head thinks we're out of the woods.

#9 | Posted by lfthndthrds

Really? I'm reading from MAGAts all over the interwebs, that economy is going to be spectacular next year, just because Agent Orange was elected. Are you already backpedaling and hedging?

#20 | Posted by Whatsleft at 2024-11-21 10:53 AM

Drudge Retort Headlines

Biden Pardons Fauci, Gen. Milley, Jan. 6 Committee Members (288 comments)

Trump Sworn In (198 comments)

Biden Last Minute Pardons for His Family (106 comments)

Trump Commutes Sentences of Proud Boys, Oath Keepers Heads (40 comments)

AP Poll: Trump Lacks Mandate on Top Priorities (25 comments)

Right-Wing Extremists Abuzz Over Musk's Straight-Arm Gesture (22 comments)

Florida Declares State of Emergency Ahead of Winter Storm (19 comments)

Trump Launches Attack on 14th Amendment (16 comments)

Melania Trump Launches Her Own Cryptocurrency (16 comments)

Trump's First Broken Campaign Promise of 2025 (15 comments)