Midterm Elections Are One Month Away: Almost a Century of History Says This Would Be the Best Outcome for Stocks
Prediction markets point to a worst-case scenario unfolding for Wall Street on Election Night.
Overview
For the better part of the six years President Donald Trump has been in the White House, stocks have thrived. The annualized return of the timeless Dow Jones Industrial Average (DJINDICES:^DJI), benchmark S&P 500 (SNPINDEX:^GSPC), and tech-powered Nasdaq Composite (NASDAQINDEX:^IXIC) is higher under Trump than under most other presidents over the last 130 years.
But from a historical standpoint, stock market returns can accelerate or fall off a cliff based on the makeup of Congress. Though not every bill passed by Congress and signed into law by the president impacts Wall Street, our elected officials are ultimately responsible for fiscal policy, which does impact corporate America.
Details
Exactly one month from today, on Nov. 3, Americans across the country will go to the polls or mail in their ballots for Election Day. Based on what history says, there's one very clear scenario that would be the best outcome for stocks on Nov. 3. But according to prediction markets, the worst-case scenario may unfold.
Source
Originally published at www.fool.com.