The Market Likes Election Years.

Presidential election years are typically good years for the stock market, averaging 12% versus a historical average of 10.5%. The returns are lopsided as they tend to all happen in the beginning and the end with elevated volatility in the middle. To say we had “elevated volatility” would be a gross understatement as we tipped the scales in that department to historical levels.

The markets tends to take off about a month before the election as they already knows who is going to win, and more often than not, that candidate promises to spend large amounts of money. Based on the fact that the energy and defense are languishing while clean energy and technology are running, it looks like the market is pricing in a Democratic win.

See below or attached for more.