SINCE US President Joe Biden came into White Office in January, it will soon be the first year anniversary to round up his leadership performance. In other words, it is time for him to submit the report card for his grades on all his policies adopted in the first 12 months during his office.
As a member of US Democrat Party, we have always observed the president loves to keep the US dollar weak and maintain low interest rate in order to support easy money policies.
This will effectively enhance the consumer borrowings in US market and increase huge liquidity. Put yourself in their shoes: What will you do when you have easy cash from the banks at super low interest cost?
Basically, all US presidents have a common goal: To create fresh new highs in stock market as a precise performance measurement for their leadership capability. At least, this is an exhibition of improving economy by benchmarking the major large companies in US market.
Naturally, these large companies pay the most taxes and make the country richer!
When we move into December, we believe that Biden will be no different from other US presidents in flexing his economic muscles by showing solid records in the triple major indexes. Hence, pay attention to the large components in high tech stocks, food services and mining companies.
In December, the US government may face another fiscal cliff in operating budgets. This has been marked down since Biden approved the new bills in September that lasted only till December 3. On December 14 and 15, there will be a final round of FOMC meeting among policymakers. Therefore, there is a high probability of issuing another new stimulus that will push the US dollar weaker while gold prices climb higher!
If you remember what Trump did in December 2018 by “playing punky head” and refusing to approve the new stimulus budget before Christmas, the US Government was shut down for the longest time over 35 days till January 25, 2019. This time, Biden will adopt a different behaviour compared to Trump.
This December may hold a colourful celebration for Biden Administration. We are likely to see new fresh highs in stock markets and new high in gold prices as well. Simultaneously, crypto assets might be charting new highs as well. Look out to fish some quick monies for your Christmas party. Have an empowering weekend.
Dar Wong is a professional in the securities and futures industry for more than three decades. The opinions expressed are solely at his own. He can be reached at [email protected].