(PresidentialWire.com)- Are you ready for some Wall Street numbers? Let’s take a look.
Reports suggest that strategists in Wall Street are growing increasingly concerned about President Joe Biden’s handling of the economy, as economic growth begins to slow down and the stock market’s record run looks to be coming to an end.
It was always likely that the stock market would rebound as soon as lockdown ended and COVID restrictions were relaxed, but with the rise of the DELTA variant, massive inflation, and other restrictive policies still causing business uncertainty, it looks like Wall Street has some serious concerns.
Fox Business reports how the benchmark S&P 500 climbed by 20% this year, clocking in 54 record-high closes. The data from Dow Jones Market Data shows that there has not been a 10% pullback in over 369 trading days, which is the longest stretch since the 501 record set between February 2016 and February 2018 – much of that being a result of President Donald Trump’s economic policies.
But according to Adam Sheets, a Morgan Stanley strategist, there is a substantial risk to growth, the legislative agenda, and policy over the next two month.
He said that the global economy bouncing back, combined with President Joe Biden and the Democrats’ massive proposed $3.5 trillion spending spree, could cause U.S. Treasury yields to increase and put massive pressure on growth stocks.
He indicated that if the economy slows down, risk premiums will “look too low versus prior growth scares.”
His comments come as Morgan Stanley economics reduced their tracking estimates for the United States Gross Domestic Product in 2021’s third quarter down from 6.5% to 2.9%.
So, what does this all mean?
Well, President Biden might just have been riding the wave of President Donald Trump’s tax cuts, which created a resilient economy that bounced back as soon as lockdown was ended.
And now, Biden is on his own.
We might soon see the result of his economic policies, and Wall Street experts aren’t confident.