Tuesday 6 November 2018

2018-18 Past performance is no guarantee of future results

Yesterday there was a mid-term election in the US.
I do not know how it ended when I am writing this, but it does not matter about what follows.
When people look at stock markets, they try to learn from history. Here is an interesting bit
Following every mid-term election since WWII, stock prices went up, a lot:
"The numbers tell the story. Since 1946, in years with midterm elections, the Standard & Poor’s 500-stock index has gained a median of 18.4 percent in the nine-month period from Sept. 30, just ahead of voting, through June 30 of the following year, according to data compiled by Ned Davis Research. In that same period in nonvoting years, the index gained 4.9 percent."

Check at the end of June if this happened again.

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