THE 🇺🇸 MIDTERM ELECTIONS ARE TOMORROW. HERE'S WHAT USUALLY HAPPENS TO THE STOCK MARKET AFTERWARD https://x.com/WOLF_Fi | Hanami
THE 🇺🇸 MIDTERM ELECTIONS ARE TOMORROW. HERE'S WHAT USUALLY HAPPENS TO THE STOCK MARKET AFTERWARD https://x.com/WOLF_Financial/status/2117373124555772256
Quoted @WOLF_Financial: THE 🇺🇸 MIDTERM ELECTIONS ARE TOMORROW. HERE'S WHAT USUALLY HAPPENS TO THE STOCK MARKET AFTERWARD
Since 1970, the S&P 500 has gone up an average of +14.1% in the 6 months after a midterm election, per BlackRock.
In years without a midterm, that number is only +5.7%.
The reason is simple. Before an election, nobody knows who will win, and the market hates not knowing. Once the results are in, investors relax and money comes back into stocks.
The rally usually starts about a month before Election Day, as polls make the outcome clearer.
This year has already been different. Midterm years are usually weak for stocks, but the S&P 500 was up +13.1% through August, one of the best starts to a midterm year in 100 years.
And it's been calm. Only 4 days this year had a big 2% move, compared to 46 in 2022.