Historical Market Reactions to Midterm Elections
Understanding the historical market reactions to midterm elections is crucial for forecasting potential impacts during the 2024 cycle. Historically,
midterm elections have had a notable influence on the stock market, often marked by increased
volatility and shifts in market sentiment. For instance, a statistical analysis of the S&P 500 index from 1946 to 2018 reveals
an average increase of approximately 16.4% in the 12 months following midterm elections. This pattern suggests a tendency for the market to rally post-elections,
possibly due to the resolution of political uncertainties that typically accompany election periods.
