Ramsey says that when economic indicators hit a low point, it's generally very good for stocks.It might not make a lot of sense that stocks have jumped in 2023 even as recession concerns have risen and interest rates have climbed to 15-year highs, notes Doug Ramsey, investment chief at Leuthold Group.
"The annualized six-month growth rate in the LEI has been inclined to trough right around the mid-term elections," he wrote."Not coincidentally, that's by far the best time in the four-year cycle to get long stocks and hold for the next six months ." Why does that trade work, and why does the market behave that way? Ramsey says it's because monetary and fiscal policy turn favorable around that time as presidential campaigns start to heat up.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more: