A quickie from Deutsche Bank on the upcoming US mid-term elections. Analysts at the bank ask if this could this be a buy signal for equities?
- The answer is a clear yes “If history is to be believed”
DB go on:
- the S&P 500 has risen in the year after every single one of the 19 midterm elections since World War II, with not a single instance seeing a negative return
- Historically, the six months after the election have been particularly profitable, with an average rally of 13% over that period
SPX weekly chart: