SPX - Presidential Update - Downside potential to 3500 in 4 yearHello everyone! Apologies for the audio quality - my laptop has been acting up.
I take this moment to update a prior video I did 4 years ago looking at presidential cycles. Historically speaking, looking at the 90s through today, we tend to see bigger corrections during republican leadership.
Clinton - Essentially no corrections.
Bush - Two major corrections (dot-com bubble and housing bubble)
Obama - Essentially no corrections.
Trump v1 - 3 corrections, including COVID
Biden - 1 correction in 2022
Trump v2 - Remains to be seen
Trump has already made significant waves and has demonstrated that he is not afraid to do so. We will probably see some volatile times ahead. I outline in the video 3 important levels to watch:
SPX 4800 - Prior all time high in late 2021
SPX 4200 - Seen as support and resistance in 2022/2023 (was the low in Oct 2023)
SPX 3600 - 2022 low and Oct 2021 high
A correction to 3600 would be a huge correction and would be worst case scenario in my eyes - I'd be more inclined to think 4800 will be the place we will go. This likely will take *years* to complete and is fully dependent upon how Trump situates the USA from a global perspective.
Don't get caught on the wrong side of the trade. Make sure you are diversified and have some cash on hand to take advantage of value plays that will almost certainly present themselves to us.
Trade safely, friends!