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Beau of The Fifth Column

Let's talk about a cross on Trump's economy and what it means....

Beau of The Fifth Column

Beau of The Fifth Column

Society & Culture

4.8965 Ratings

🗓️ 17 April 2025

⏱️ 4 minutes

🧾️ Download transcript

Summary

Let's talk about a cross on Trump's economy and what it means....

Transcript

Click on a timestamp to play from that location

0:00.0

Well, howdy there, Internet people, it's Bell again.

0:04.0

So today, we're going to talk about an economic indicator you don't need to worry about too much.

0:10.0

Okay, so there's been a lot of bad economic news, and we just saw something happening with the SMP 500 that is probably going to get a lot of headlines.

0:20.0

And because of its name, it's probably going to cause a lot more anxiety than it really should,

0:25.6

at least at this point.

0:27.6

An incredibly common market tool is something called a moving average.

0:32.6

Two of the most used, especially in this regard, are the 200-day and the 50-day moving average. Those

0:39.7

are exactly what they sound like, the average over those periods of time. On Monday, a signal

0:45.8

emerged. It led to this question. Quote, I'm finally starting to see how all of this impacts

0:52.4

me, even though I'm definitely not rich, and I don't

0:56.0

have any money in the market. I started reading some stuff about it, and the S&P 500, which is where

1:02.8

the company I work for is listed, did a death cross? How worried should I be? Okay, so a death

1:10.5

cross is when the 50-day average drops below the 200-day average.

1:15.4

It often gets read as a sign of deeper downward turn.

1:19.6

How worried should you be?

1:21.5

I mean, it's called a death cross.

1:23.6

It's obviously not good.

1:25.4

I've never heard anybody say, oh, yay, a death cross. However, it's not as scary

1:30.9

as the name implies. If you look at the previous death crosses on the S&P 500, most pull out of the downturn

1:38.4

within a month or two. There's been about 20 since the 80s. The overwhelming majority resolve themselves pretty quickly,

1:46.1

and I think it's something like 80% are back positive within a year.

1:50.8

However, and this is a big however,

...

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