Historically, midterm elections provide a boost to the market and economy regardless of the outcome. Brian Belski, Chief Investment Strategist at Oppenheimer Asset Management said that’s because anything is better than “gridlock.”
Putting the politics aside, Belski found that the performance of the market and economy typically improves rather sharply during the two-year period between midterm and general elections regardless of the outcome.
“In fact, major indicators of economic activity all show dramatic growth rate increases, while the S&P 500 average annual total returns double during midterm elections compared to general elections,” said Belski.
Belski continues to be relatively bullish, expecting the S&P 500 to finish out the year at 1,225.
Belski is in the camp that the economy remains “intact” for the long-term. Belski says he's managing his portfolio with a more “cyclical approach” and has upped his exposure of energy stock, recently recommending a “market weight position” from “underweight.” Other sectors Belski likes include tech, industrials and consumer discretionary.
Our all-star panel of experts weigh in on today’s elections impact on the stock market. Watch Closing Bell 3-5PM ETthis afternoon for full analysis.
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