STUART VARNEY: This market sell-off is different, because, this one hits a big chunk of middle America. It hits more people than past down-turns. There’s a political angle to this.
Back in the day, not that long ago, the elites dominated stock ownership. Then came 4019(k)s and IRAs – a way for ordinary folks to save for their retirement. One hundred million middle Americans piled in. Most of the money went into stocks.
In the Trump rally, which took the Dow from 18,000 to over 30,000, ordinary folks did very well.
President Trump used to say ‘have you checked your 401K?’ The crowds loved it. When 100 million Americans have a piece of the stock market, they have an interest in the market’s performance. Love it when it goes up. Not happy when it goes down.
This selloff is a Biden liability. When people ask ‘am I better off now under Biden than I was under Trump?’ The answer may not be favorable to Democrats.
Is Biden to blame for the selling? In part, yes, because this sell-off has a lot to do with inflation, which he seems unable to understand and is incapable of fixing.
Because stock ownership has become so widespread, the performance of the market may now be a factor in elections.
Republicans could campaign with this: ‘look what Biden did to my pension plan!’