Displaying items by tag: midterm elections

(Washington)

Stocks may do well after the midterm elections, but Barron’s is arguing that rise will be preceded by a fall in share pricing leading into the elections. The contention is based on two arguments which rely on historical trends for the market. One is that markets do well in the third year of a presidential cycle, and the other is that stocks tend to do poorly in the summer. All of that points to a market that is likely to start rallying in the Autumn, specifically November 1st, says Barron’s.

FINSUM: While Barron’s does point it out, it is very worthwhile to bear in mind that these types of calls are only as good as the actual catalysts one sees that could really drive them. In this case, the uncertainty over how the Republican party will fair in the midterms may be a key factor.

(Washington)

The midterm elections are currently dominated by two incompatible assumptions. Democrats think Trump’s low approval rating and the rash of Republican congressional retirements will lead to a big string of victories for their party. Republicans hope that growing economic confidence, underpinned by the White House’s policies, will win out. The big X-factor is now the stock market, which has been gutted over the last few days, a fact which could rattle the economic confidence of Americans. Democrats need 24 seats in the House to take back a majority. Many suspect they will win 30.

FINSUM: Trump and the Republican party are up against history (the party of the President typically does poorly in midterms), and now possibly the markets and economy.