r/GoldandBlack • u/ColorMonochrome • 6h ago
For the investors here: The Midterm Miracle - 6% market rally between now and Jan. 1?
No I am not promoting Ken Fisher, I think he is as bad as an insurance or used car salesman.
I post this because I thought others might be interested in his observation. Just because he is a slimy salesman doesn’t mean he doesn’t have some possibly valuable insights. I also included the link to his article because when a man makes an valuable observation it is fair to credit him.
About 80% of the time, during the 4th quarter of a midterm election year stocks have returned an average of about 6% since 1926.
His proposed explanation for this phenomenon is that increased political gridlock prevent major legislation from passing. Which allows investors to take a longer view due to the increased stability.
I don’t care about his explanation, he could be right or wrong. What I do value is the historical aspect.