In yesterday’s research report from economist Ed Yardeni, he posited that three months after a midterm election, the performance of the market was “outstanding”. His research also shows that from the midterms to the end of the third year of a Presidency, the performance of the equity markets are “spectacular”.
He also reiterates a point we have been enthusiatically supporting. “A sweeping ouster of incumbents on November 2 might be a good start to bringing back some fiscal discipline in Washington by newly elected legislators, who really want to do what’s good for the country rather than for themselves.”
If this becomes a reality, the rally we have been experiencing could certainly continue for the next year.
