The 3 Biggest Threats to the Biden Bull Market
Earlier this week, the United States began a new chapter. Following the November election, Joe Biden was sworn in as the 46th president of the United States.
Although Biden enters office with the U.S. economy still reeling from the coronavirus disease 2019 (COVID-19) pandemic, he has a number of tailwinds at his back. The Federal Reserve has pledged to keep lending rates at or near historical lows, and Democrat control of both houses of Congress makes it more likely that additional fiscal stimulus is passed. With both monetary and fiscal policy lighting a match under the U.S. economy, it's quite possible we could see a raging bull market emerge.
But as investors, we're also keenly aware of how common it is for stock market crashes and corrections to occur. For example, the benchmark S&P 500 (SNPINDEX: ^GSPC) has undergone 38 corrections of at least 10% over the past 71 years. That's an average of one sizable move lower every 1.87 years.
Source Fool.com
