Ricks Picks header image

How Good/Bad a Hand Has Biden Been Dealt?

2 comments

Stocks have turned timid, although it remains to be seen whether the moderate selling that ended the week will gain momentum as Biden’s inauguration approaches.  Regardless, the smell of distribution is in the air, and it is not subtle.  As the tempo of it picks up, expect DaBoyz to work overtime trying to convince us that Wall Street is down with the Democrats. Big Business owns Biden, right? Well, yes and no. It’s true that the Silicon Valley muckety-mucks have less to fear from him than from Trump. But there’s no getting around the scary fact that this will mark the most radical political change in U.S. history. Most of Biden’s appointees are familiar faces from the Obama years, and that has reassured those who hope to benefit from the Democrats’ electoral sweep.  But the political checks and balances that existed when Obama was president no longer obtain, and one-party rule could conceivably run amok in ways that Biden’s corporate cheerleaders have failed to anticipate.

A Fragile Economy

For the time being, though, the vaccine program will get most of the attention.  Biden and the Democrats will own it in just a few days, but its success is hardly assured. His procedures and protocols for dealing with the pandemic are unlikely to differ much from Trump’s, since there is not enough hard science to justify changing things radically. The danger is that even a small tightening of the lockdown could undo an economy whose fragility has been masked by the powerful bull market in stocks. Do the Democrats understand this?  We may be about to find out. But there should be no illusions in the meantime that the Democrats, cozy as they are with Silicon Valley and social media’s opinion-shapers, will be great for stocks.

Please do not ask trading questions!

  • Larry D January 19, 2021, 11:41 am

    Just imagine… Uncle Joe will be older at his swearing-in than Reagan was when he vacated the White House.

  • gbrain42 January 18, 2021, 7:41 am

    Just wait, the first caravan of indigent and illiterate Central Americans is on its way; and all Biden can do is say “Now is not the time”; when is the time? Couple that with increased H-1B1 Visa recipients for Silicon Valley, and the Middle Class will further be destroyed.

    &&&&&

    Looking on the bright side, California will be the first to perish in hellfire. RA


Do you want up-to-the-minute technical analysis and forecasts for your favorite stocks, commodities, ETFs? Join our Take Request Session on May 04th!

No, I'm not Interested

Discover WHY Crippling DEFLATION Is Upon Us and Your Best Wealth & Financial Defense Plan Against the Looming Collapse!

Join Us Friday, Mar 19th @ 1pm ET For a Live TELL-ALL Webinar

No, I'm not Interested

Free Butterfly Spread Video Training

Discover an ultra-easy trading strategy that delivers darn-near-zero risk in this free 1 hour video training.

The Story You Haven’t Heard About the GameStop Saga...

Join Us Thursday, Feb 11th @ 12ET For a Live TELL-ALL Webinar

No, I'm not Interested