Worried about this stock-market selloff? Relief may be coming after the midterms — no matter who wins.

FundNews.com brief · 1h ago · 1 min read · via marketwatch.com

The nine months between Election Day and June 30 have seen the S&P 500 deliver an average return of 15.5% going back to 1950.

The current stock-market selloff has investors on edge, but historical trends suggest that relief may be on the horizon after the midterms. According to data going back to 1950, the nine-month period between Election Day and June 30 has typically seen the S&P 500 deliver an average return of 15.5%. This pattern is noteworthy, as it implies that investors may be able to expect a rebound in the market, regardless of the outcome of the midterms.

This phenomenon is likely due to the fact that, historically, the market has tended to perform well in the aftermath of elections, as uncertainty and volatility tend to decrease once the outcome is known. Additionally, the period between Election Day and June 30 often sees a boost in investor sentiment, as well as a increase in economic activity, which can contribute to a rise in stock prices. While past performance is not necessarily indicative of future results, this trend is worth keeping in mind as investors navigate the current market volatility.

Looking ahead, investors should keep a close eye on how the market reacts to the midterm election results, as well as any subsequent policy announcements or economic data releases. The Federal Reserve's upcoming meetings will also be closely watched, as any changes to interest rates or monetary policy could have a significant impact on the market. As always, a diversified investment approach and a long-term perspective can help investors weather market fluctuations and stay focused on their goals.

Originally reported by marketwatch.com. FundNews adds analysis for finance & markets readers.

Originally reported by marketwatch.com. FundNews.com curates and briefs the finance & markets stories that matter. Our editorial policy →
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