This week in Bidenomics: Don’t fumble the handoff
Published On Dec 14, 2024, 10:00 AM
President Joe Biden claims to leave Donald Trump a strong economy with record job growth and low unemployment rates, bolstered by COVID-era stimulus. However, risks remain, including potential inflation from service price increases, possible trade tariffs that could exacerbate inflation, and a potentially overvalued stock market. These factors could pose challenges for Trump’s economic plans and perceptions of economic health in the coming years.
Stock Forecasts
SPY
Negative
Given the risks of inflation and potential stock market corrections, especially if tariffs are imposed or if interest rates remain higher for longer, the market may face downward pressure. Conversely, energy stocks may benefit if Trump promotes deregulation and increases energy production.
XLE
Positive
Energy sector investments may see a positive trend if Trump's anticipated policies are implemented successfully, as increased production and deregulation could boost energy stocks.
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