Is Joe Biden A Friend Or Foe In The Marketplace?

The Money Trade
Mar 10, 2021
2 min read

Inflation can put this country's economy in a choke hold. The definition of inflation from an economic standpoint is

a general increase in prices and fall in the purchasing value of money.

"Policies aimed at controlling inflation." Congress just approved over a trillion dollar stimulus package, which is a tad bit too much considering where the money coming from. Consistently printing money is not a good idea considering nothing is backing the dollar.

The market has been incredibly volatile for the past couple weeks. Gas has gone up which this is a signal for inflation. Biden is not a fan of Wall Street, so the economy is not a strong suit for this president. In fact, he speaks against the market even though it's the epicenter for the economy.

Now that the country is set to open back up as the dust will settles on who is a serious investor or not. During the pandemic there were a record number of people opening accounts with brokerage firms like Robinhood. Most of these people are shopping in the market for the first causing speculative volatility. With this being said, the market was still Bullish.

There will be good stock to buy when the country opens up 100%, but that doesn't mean the market will be stable. If something has my portfolio volatile, my position is to sell. I can hold on some companies like Tesla because they will recover. Plus, hold off from shopping right now, while companies that do have my interest will go into my watch list.

I encourage investors not to be afraid to sell stock. When things are more settled they can simply buy back into the company. Today's market could be the pull back most analysts were anticipating. During the pandemic the market was strangely strong considering unemployment, a shut down, and businesses closing is generally a recipe for a bad market. Incredibly in 2020 the market was the opposite.

My portfolio did exceptionally well during a Bullish pandemic market. On the other hand, it's a great time to take advantage of a Bear market. Share prices are incredibly low. I did sell some shares, but with a company like Tesla, my position is Hold.