The Clap
After 2 years into Biden’s presidency, the midterm elections are underway & markets have seen a steady performance during this period.
The Deets
The stock market has historically performed well following midterm elections. The S&P 500 recorded an average growth of 16.2% following every midterm election since 1962.
Midterm Elections
Midterm elections take place in the middle of every president’s term. The House of Representatives and ⅓ of the senate are up for election during this period.
So What
Generally, stock markets perform well after all elections due to one key aspect: certainty. Investors like certainty, and once elections are concluded, these investors can plan the next steps in their investment strategies accordingly.
Now What
Inflation is expected to continue to haunt the economy, which could drive the market down as more interest rate hikes remain on the agenda.
In addition to that, the election is leaning more toward the Republican side, making it potentially more difficult for Biden to pass major decisions.
