# New Fed Chairs and Stock Market Drops: What History Suggests

- Original post: https://www.twitter.com/i/status/2069274846928757230
- Source account: [@FinanceLancelot](https://x.com/FinanceLancelot)
- Source language: English
- Duration: 2:06
- Published: 2026-06-25
- Canonical URL: https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests

## Transcript

[0:00](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests) everything goes perfectly, which we now know it won't be.

[0:03](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=3) So now the real question for me as an investor is, well, okay then, what can we expect from the stock market?

[0:10](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=10) Let me show you what history says will happen.

[0:13](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=13) Take a look at this chart. This is from Barclays and Bloomberg, and it shows what this S&P 500 has done in the first three months after a new Fed chair takes over.

[0:23](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=23) If you go down the list, almost every single time you got a new Fed chair, the market goes negative.

[0:30](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=30) On average, the stock market falls about 12% in the first three months of a new chairman.

[0:35](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=35) Some of them, like when Alan Greenspan took over, the market went down by 33%.

[0:41](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=41) Another one way back went down 32%. Look at who had the smaller drops.

[0:47](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=47) It was Powell, Yellen, Bernanke. Those were the continuity guys.

[0:53](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=53) But the giant drops in the market, like the 30% plus ones, that happened when a new chairman came in and changed the game.

[1:01](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=61) All right, the bigger the change, the bigger the drop.

[1:04](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=64) I could see that happening in the stock market.

[1:06](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=66) It is very possible that by October, November timeframe. we see the market down.

[1:12](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=72) Although, it is also possible that we thread the needle, the deal gets done, inflation based on this new data comes down, and then we go right into printing money.

[1:23](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=83) It kind of depends on what happens with this Iran deal.

[1:26](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=86) Anything is possible and nothing is certain, but I'm still invested.

[1:30](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=90) According to Luke Groman from FFTT, here's how you know everything from this video will come true about their master plan.

[1:39](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=99) There's five signs to look for to know their plan is working, and that is a weaker dollar, higher stocks, lower 10-year yields, higher gold prices, and higher Bitcoin prices.

[1:51](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=111) On Wednesday, every single one of those signs flashed the opposite.

[1:57](https://www.translate.mom/transcript/k2aojUNNxkzX/en/new-fed-chairs-and-stock-market-drops-what-history-suggests?t=117) Dollar up, stocks down, 10-year treasury yields up, gold down, and Bitcoin down, which means their plan is failing.