There is a rough inverse correlation between federal deficits and S&P 500 stock valuations, such that when deficits spike, stock market valuations tend to rise shortly thereafter, though this is not a perfect leading indicator.
factualpending
Speaker
Unidentified Speaker — Why You're Getting Poorer: Major Slowdown Ahead | Donald Bo… [-GB5EAmFeAk]Evidence Quote
“If you overlay this with the S&P 500, there's rough there's a rough inverse correlation. Not perfect, but rough. Meaning whenever the deficit seems to spike, we have um a rise in uh stock market valuations shortly thereafter.”
Created: 8/11/2026, 7:16:28 AM
My Notes
Loading notes...