FYI: Stocks tend to rally after midterm elections—but investors shouldn’t count on a post-election jolt to save them. The markets could use one, of course. The S&P 500 has fallen 7% in October on fears of rising interest rates, trade tensions, and underwhelming earnings guidance. The Nasdaq, led by tech stocks, is nearly in correction territory, down 9% this month.
Elections are important, but they don’t necessarily change underlying market dynamics. Concerns about trade and earnings are weighing heavily on sentiment and market dynamics. “The election results are a fifth order of magnitude,” says Keith Parker, chief U.S. equity strategist at UBS.
Regards,
Ted
https://www.barrons.com/articles/stock-market-midterm-elections-1540585849?mod=hp_DAY_4
