U.S. elections: + 11.57%. Don't miss this buy opportunity.

2018年11月8日

This chart illustrates the performance of the S&P500 index after each mid-term elections in the United States.

We can see that since 1950, in the past 17 elections, the S&P has grown in the months that followed in 16 of these occasions. The only exception was after November 2002, when the index suffered -17.62% losses in the months that followed. The rest of the bullish sequences gave on average of +32.84%.

If this time the S&P follows this pattern (+32.84%), then we get a projected target of 3,720. This is of course less realistic as this average takes into account periods (before 1998-2000) that the market was very different and less complex than it is today. It is safer therefore to calculate the average since 2006, a period not too far ago, much more similar to how we know the market today. So the past three post elections gains gave an average +11.47%.

This is good news for long term investors, who can now safely go long on U.S. stocks.




** If you like our free content follow our profile (tradingview.com/u/InvestingScope) to get more daily ideas. **

Comments and likes are greatly appreciated.