Stock Market Performance Post-Election

With the mid-term elections just 5 days away, the clear question is “Will a Republican victory help the stock market? Or will the market fare better if Democrats hold on to Congress ?

Here’s the shocking answers I found…Stocks have rallied after nearly every mid-term election since 1942.

According to the Leuthold Group, a Minneapolis-based investment-research firm, large cap stocks on average rally more than 11% in the year following a mid-term election regardless of who wins.

Because investors hate uncertainty, what matters most is simply getting the election over with. As I’ve said over and over, the market hates not knowing who will be in power. It doesn’t matter if power shifts to the other party or not. It’s knowing what’s going to happen, knowing how policy will be formulated. It’s a clearing up of the clouds of uncertainty that will send the market higher.

BUT – history is not a 100% guarantee on performance!