Midterm magic just ahead to goose Canadian stocks

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 36 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 92%

United States News News

United States United States Latest News,United States United States Headlines

An unfathomed catalyst should soon bring sweet relief to the TSX

The Bank of Canada’s rate hikes, galloping inflation despite plunging housing prices, fading commodity tailwinds - these and more have commentators shrieking recession looms, dooming the TSX. Think again. Why? An unfathomed catalyst should soon bring sweet relief: November’s U.S. “midterm” congressional elections. Those raucous contests voters hate deliver a form of Canadian stock market magic - gridlock - and it brings do-nothing governments, which stock markets love. Particularly in Canada.

Since 2021, razor-thin margins let President Joe Biden’s Democrats pass big spending and regulatory bills. November’s midterms should squash that. Consider: Democrats’ nine-seat House of Representatives edge is historically tiny. All 435 House seats are up in November, and the president’s party routinely loses seats to the opposition party. Presidents that have below average popularity, like President Biden, lose on average 38 seats.

That rally rolls on: returns average 6.6 and 5.5 per cent in the ensuing two quarters, with 87.5 per cent of each positive. Midterm magic! Hence, there hasn’t been a negative third year of a president’s term since 1939 - and it was only down 0.9 per cent.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
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:

 /  🏆 5. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Kim Shannon says value stocks are finally getting the love they deserveThe portfolio manager at Sionna Investment Managers discusses why she’s cautiously upbeat on energy stocks and finds Canadian Tire attractive
Source: globebusiness - 🏆 31. / 66 Read more »