With little end to the economic downturn in sight, stock markets opened today at a 15-month low as the SP500 officially enters bear territory.
Economic conditions across America are reaching dangerous levels as interest rates continue to rise, the average cost of a gallon of gas has crested $5 and the cost of food is rising at its fastest pace since 1979.
To add insult to injury after weeks of sustained losses, there is little end in sight for investors who are feeling the impacts of the current economic downturn. All indices opened negative on Monday morning, after a rocky week of trading last week.
With this latest negative trading day, the SP500 is officially in a bear market pattern, 20% from its peak.
The sustained losses in the stock market and the ongoing selloff keep getting worse. Americans 401k plans are shrinking by the day and many investors who had previously felt that the markets had reached their bottom are scrambling to keep their money safe.
However, the indices are not the only markets reaching new lows. Cryptocurrencies plunged this weekend sparking fears of another “crypto crash” as Bitcoin (BTC) fell below its support level of $30,000 and is now fighting to maintain $23,000. Ethereum (ETH), another popular cryptocurrency fell below $1,200 marking an almost 70% loss over the last 6-months. Losses were not isolated to BTC & ETH as smaller alt-coins tumbled, following suit.
The continual pattern of red-days on the stock market reflects the overall economic health of America, and the outlook is not good.
Inflation continues to rise despite previous statements from the Biden Administration, that this would be a short period of discomfort that would only be “transitory”.
Since then, gas prices have continued to rise, grocery store bills have continued to rise, and families across the country are struggling to make ends meet. Earlier this month, Treasury Secretary Janet Yellen admitted it had been a mistake to refer to inflation as ‘transitory', and that action was needed to combat levels that are unhealthy for the American people.
Voters across the nation will be headed to the polls in November to have their say in this year's midterm election.
The White House has been scrambling to tackle falling numbers in opinion polls that show they are in hot water. However, the White House has remained absent on inflation and is yet to come up with a coherent strategy to tackle the most pressing issue facing American families.
The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.
