The U.S. midterm elections are not only an event that decides the fate of political power in Congress but also something that affects the stock markets.
In a note to clients, Jim Reid, a markets strategist at Deutsche Bank, pointed out that midterm elections are one of the “best historical buy signals for equities,” according to The New York Times.
Since 1950, the S&P 500 Index has moved up in the year following a midterm election, regardless of the party in power. The index historically has risen by 17.5 percent on a 52-week basis when Americans chose a Republican-controlled Congress and a Democratic president, the media outlet said, citing LPL Financial….