political party has lost seats 13 times in the House and nine times in the Senate over the last six decades in 15 midterm elections, according to CNC Financial Group. Historically, the market has mostly underperformed in the year leading up to the midterm, which would be consistent with the current economic situation in the U.S. Moreover, stocks also outperform 12 months after the midterm with an S&P 500 average of 16.3%, according to Bloomberg.
For example, election results from years both Donald Trump and Joe Biden claimed the presidency were followed by an S&P 500 total return of nearly 24% in 2016 and a 40% in 2020. Factors outside the control of party affiliation will determine how the market will react. Since 1946, in nearly 90%, or 17 of the last 19 midterms, market performance increased six months after the election compared to the months leading up to it.
In fact, all that money is one contributor to the 40-year high in inflation, and any new spending would likely exacerbate the issue.
Pump than dump
Rigging 🤮