btw midterm election... Politics and investing do not mix. Superinvestor Warren Buffet often says “If you mix politics and investing, you’re making a big mistake.” So let’s steer clear of opinion and emotion. Instead, I want to focus
solely on the facts that are relevant to you as an investor.
As you’ll see, you don’t need to waste even one second worrying about which party will win on Tuesday.
My team went back and studied every midterm election since the Second World War.
I was surprised by what we found.It turns out there’s a shockingly easy way to predict whether stocks
will rise or fall after a midterm election. And it has nothing to do
with predicting in advance which party will win.
Here’s what we found… Since 1946, there have been 18 midterm elections.
US stocks have climbed higher in the next 12 months after every single one. Every single one.
That’s 18 for 18! I’ll repeat it because this is so important:
For each of the past 18 midterms, stocks have ALWAYS climbed higher a year later. Always. We’ve had every possible political combination in the past 72 years.
Republican president with Democratic Congress. Democratic president with
Republican Congress. Republican president and Congress. Democratic
president and Congress.
The market climbed higher every time. Stephen McBride
Chief Analyst, RiskHedge
ELLI(o)TT KLUB