The market can change at any moment’s notice, and some have recently been sounding the doomsday alarms. But we don’t rely on any one’s individual opinion. It’s better to take a measured mindset through careful analyses of the market. These careful analyses involve stock market indicators.
Let’s let you in on a secret…if there’s one indicator we always pay attention to, it’s this: Since World War II, the S&P 500 has shot up between 6% to 27% in the 12 months since the midterm elections, the average coming in at about 15%. This indicator is perfect: It’s worked 18 times in a row without fail. You need to take a closer look at this mouth-watering potential for the stock market regardless of any activity to date. Major returns could be on the horizon and soon.
What’s to Come
Of course, the midterm elections happened back in November. But the S&P 500 has only risen about 2% since then. With the post-midterm rise being 6% or higher in fourteen of the eighteen periods, we see good room for it to grow further to maintain the perfect run.
Make no mistake about it: The third (post-midterm) year of an election, has been outstandingly bullish every single time up until 12 months after the midterms. The common reason given is that the first two years of the presidency consist of tax cuts and other changes to the economy. These efforts then result in stock market gains in the third year. Now that Trump has made major tax cuts and the NAFTA trade war has subsided, the stock market is on fire.
Even More Signs of an S&P 500 Rise
Investors are reveling in the abundance of positive signals of more rises to come for the S&P 500. The U.S. and China seem poised to agree to a trade deal soon, gas prices have rebounded, and tech stocks are burgeoning once again. The S&P 500 is also nearing to break 2,800 yet again, a continuous barrier that, if surpassed, could mean a strong market push ahead to new heights.
Your Moves Jason Hunter of JP Morgan expects the S&P 500 to hit a record high of 2,950 by late summer or early fall. With all signs pointing up, this perfect indicator is giving a clear message: The market is looking good for buying these days.
-Investing Insider Magazine
