After the U.S. midterm elections, I looked up some historical data, and it’s actually pretty interesting.
In the 19 midterm elections to date, the S&P 500:
Rose by an average of 7.2% over the following 3 months, with gains 17 times.
Rose by an average of 14.6% over the following 6 months, with gains all 19 times.
Rose by an average of 18.2% over the following 12 months, with gains all 19 times.
In other words, according to these historical figures, in the year after a midterm election, the S&P 500 hasn’t fallen a single time in the past 72 years.
Of course, there’s no telling whether that streak will continue this year.
With U.S. stocks down this much, I really hope the historical pattern holds true once again.
$QQQ $SPY $GOOGL
In the 19 midterm elections to date, the S&P 500:
Rose by an average of 7.2% over the following 3 months, with gains 17 times.
Rose by an average of 14.6% over the following 6 months, with gains all 19 times.
Rose by an average of 18.2% over the following 12 months, with gains all 19 times.
In other words, according to these historical figures, in the year after a midterm election, the S&P 500 hasn’t fallen a single time in the past 72 years.
Of course, there’s no telling whether that streak will continue this year.
With U.S. stocks down this much, I really hope the historical pattern holds true once again.
$QQQ $SPY $GOOGL
