New Fed Chairs and Stock Market Drops: What History Suggests

everything goes perfectly, which we now know it won't be.

So now the real question for me as an investor is, well, okay then, what can we expect from the stock market?

Let me show you what history says will happen.

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.

If you go down the list, almost every single time you got a new Fed chair, the market goes negative.

On average, the stock market falls about 12% in the first three months of a new chairman.

Some of them, like when Alan Greenspan took over, the market went down by 33%.

Another one way back went down 32%. Look at who had the smaller drops.

It was Powell, Yellen, Bernanke. Those were the continuity guys.

But the giant drops in the market, like the 30% plus ones, that happened when a new chairman came in and changed the game.

All right, the bigger the change, the bigger the drop.

I could see that happening in the stock market.

It is very possible that by October, November timeframe. we see the market down.

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.

It kind of depends on what happens with this Iran deal.

Anything is possible and nothing is certain, but I'm still invested.

According to Luke Groman from FFTT, here's how you know everything from this video will come true about their master plan.

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.

On Wednesday, every single one of those signs flashed the opposite.

Dollar up, stocks down, 10-year treasury yields up, gold down, and Bitcoin down, which means their plan is failing.