August 18, 2022

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Why Biden has been silent on the stock market

Yahoo Finance’s Rick Newman joins the Reside exhibit to talk about President Biden’s silence on the stock industry.

Online video Transcript

BRIAN SOZZI: President Biden has experienced a good deal to say about the condition of the US overall economy, but a single detail he has been somewhat peaceful on– stocks. Yahoo Finance senior columnist Rick Newman joins us for this 7 days in Bidenomics. And Rick, no tweets from the president on stocks.

RICK NEWMAN: No tweets, no absolutely nothing. He actually has nothing at all to say about the inventory market. He is been speaking a whole lot about the economic climate. He evidently is hoping to deliver a concept to voters. He understands inflation is as well substantial. He appreciates fuel costs are way too significant. He feels everybody’s soreness. But he has not expressed, genuinely, any sympathy at all for stock market place traders.

And if you go back again to his– search at what he claimed about the stock market place during his whole presidency, about 18 months so far. He truly has never ever explained anything at all about the stock sector. He talked about it 1 time very last September. And he mentioned, you’ll notice I have never said a phrase about the stock current market. Then he said a word about the inventory sector. He pointed out it was up 17% because he experienced taken place of work. Of course, it has turned around recently, with both equally the S&P and the NASDAQ in a bear sector.

So the White Home has been receiving issues about this. Is President Biden mindful of what’s going on in the stock sector? What does he feel? And mainly, the spokespeople have claimed he’s conscious of what is occurring the stock sector, but he doesn’t consider the stock marketplace to represent the overall financial state. And I identified one clue to his imagining in this interview he gave to the Linked Push yesterday. He talked about the Trump administration.

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And he explained one of his frustrations about the Trump administration was that– and this is a quotation– all the things was built and constructed and arranged in get for the leading 1% to 3% of the inhabitants to do very well. Almost everything else appeared to be an afterthought. So that implies Biden would not want to convey a ton of sympathy for buyers shedding income in the inventory market because he considers them to be wealthy people today. And he wishes to target much more on lessen profits and center course people.

BRAD SMITH: I guess the normal assumed would be– we have to consider and acquire into account here the number of new traders that have entered into the stock markets in excess of the earlier 12 months and adjust, whether that be simply because of the meme inventory frenzy, whether or not that be mainly because of some of the inventory splits, earning massive providers family names, Tesla, Apple, Google, even, extra obtainable to some of those buyers, even as we’re waiting around for some of these new stock splits to however choose impact. Should really the White Household have a a lot more conservative tactic about this from this place forward?

RICK NEWMAN: So you’re speaking about speculators, I consider, more than what you may phone extended-phrase investors. And you could also toss crypto buyers or crypto speculators into that group. They are definitely taking a beating as nicely. But I feel even much more broadly than that, Brad, I mean, you know, like, half of People in america personal stocks, and they’re not– most of them are not speculating. Most of that is retirement cost savings. Which is 401(k) plans.

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And it starts off to seem to be a very little mysterious that Biden does not admit that people’s nest eggs, I necessarily mean, their retirement accounts, are truly shedding worth. I indicate, a large amount of individuals who have retirement accounts also own household. And that asset is essentially executing really nicely. That has appreciated by a whole lot.

But in conditions of the prosperity impact, people do search at their investment decision accounts and their retirement accounts. And no 1 likes to see negative quantities in your retirement account. So I imagine that is probably contributing to this gloom and some of these awful self-confidence figures that we’re hearing about. So I assume it would make perception for Biden to handle this at some point.

BRAD SMITH: Yahoo Finance’s have Rick Newman signing up for us now to break down every little thing– or joining us to split down every thing Bidenomics. Rick, we recognize the time here.

RICK NEWMAN: Bye, men.

BRAD SMITH: See you.