Stocks unlikely to repeat historical strong post-midterms elections performance – Charles Schwab
|Stocks tend to outperform after midterm elections. Will the trend hold? Liz Ann Sonders, Schwab's Chief Investment Strategist, gives her point of view.
Will midterms affect market performance?
“Post-election outperformance is often driven by the market's expectation of increased government spending from a new Congress. But an additional infusion of funds seems unlikely this year, given the government's historic levels of spending and stimulus in response to the pandemic.”
“The combination of high inflation, the war in Ukraine, and a lingering pandemic has already made this cycle unlike prior midterm years. With so many other forces at play in the market, I wouldn't put much weight in historical midterm-year performance.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.