This week in Bidenomics: New president, same gloom

Published On Dec 28, 2024, 10:00 AM

This week, consumer confidence in the US economy dropped significantly, indicating a pessimistic outlook as Americans expect economic conditions to worsen. Despite improvements in some economic indicators, such as lower inflation and job creation, the sentiments suggest a disconnect between actual economic performance and public perception. Many Americans are now bracing for possible price hikes due to anticipated tariffs on imports set to be implemented by incoming president Trump, further contributing to a gloomy economic outlook. Overall, the economic atmosphere is reminiscent of recession conditions, with expectations not improving under the new administration.

Stock Forecasts

SPY

Negative

Given the negative sentiment regarding the economy and potential for new tariffs leading to higher consumer prices, economic growth could be stifled in the short term. This could weigh on stocks, particularly in consumer goods sectors that may see reduced spending from consumers anticipating higher prices.

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