The Stock Market & Mid-Term Elections
A month ago, I put out a note about elections and why the party affiliation of the President hasn’t been as important to the stock market as most people want to believe. Now that we are a little closer to the big day, I can leave you with one more chart on the topic.
This one was sent to me by a client and makes the point that the average 1-year total return following a mid-term election is 18.6%, which is higher than the average stock market return in all other years.
Equally notable is that the US stock market has risen in every 12-month period following every mid-term election since 1950. As always, there are no facts about the future and I make no promises, but if you are looking for a reason to be optimistic about the stock market, this chart is as good as any.
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