Today [published yesterday], the entire House of Representatives and one-third of both the Senate and state governorships are up for grabs. As Americans across the nation decide the direction our country is headed, market watchers are anxiously awaiting an outcome that could determine where the market is headed.
If history is any guide, the answer is higher.
This chart tracks the historical S&P 500 Index performance following mid-term elections since 1934. The strong rally over the past months has shot us above historical norms. Deutsche Bank says that we normally see a sell-off directly following elections while the results are digested, then an extended strong period follows.
Political experts are predicting Republicans will take control of the House [they have] and Democrats will narrowly maintain control of the Senate [also true post election]. But we’re not political experts, we’re investors. So what does this mean for us?
We first must place today’s events in historical context. To help do that, we’ve brought in cycle-ologist Ian McAvity to place the elections and their expected market impact into historical perspective and offer insight into what the elections and other market events could mean for gold, commodities and world markets. Now is your last chance to sign up for our Post-Election Update Webcast with special guest Ian McAvity.
McAvity is a chartist extraordinaire, who will share with you ways to identify where we are in several different cycles: The Debt Supercycle, the Presidential Election Cycle and the Gold Cycle.
We hope you’ll join us for this special web presentation on Wednesday, November 3, 2010, at 4:05 PM ET.
A replay of this webcast will be available following the live event
