Today is Election Day in the U.S., and while the spotlight is on the political arena, this is the perfect time to ignore the noise and focus on what really matters.
When it comes to seasonality, some of the best signals that we get are when the market does not follow the historical pattern or seasonal trend.
The chart below shows the S&P 500's average monthly returns during election years.
As you can see, we’re leaving the September and October window, which are the two worst months, and entering the best two-month period for the S&P 500 during election years.
If the S&P 500 was able to post a positive performance during the toughest two months, how do you think it will perform during the best two?
For me, I think it means we should prepare for a year-end rally. It’s that simple.
And I think this is the case regardless of who wins the election tonight.
JC and Strazza went live to chat about the market’s reaction to early election results and which sectors might come out on top. Click here to watch the replay.
