Election
Which party will win?
In this midterm election, voters across the US will decide whether Republicans or Democrats will control the House of Representatives and Senate. Based on Moomoo voting statistics, Republicans have a good chance. But I'm not sure, all standing chance of 50-50%. Republicans blamed for historically high interest rate, consumer prices and gas prices on President Biden and Democratic policies. I believe the economy will remain voters' top concern in 2022.
What is the impact on stock market and should investors buy in or bail out?
Stocks are more likely to rise following the midterm elections. The US midterm elections, as well as a possible shift in the balance of power in Congress, could have a significant impact on the economy. A divided government could result in political gridlock that hinders major policy changes, which investors see as positive for equities, causing the stock market to rise. Regardless of the outcome, previous midterm elections have signalled the start of a period of positive market performance, with stocks performing better in the six months following an election. This is what investors are looking for after a year in which the S&P 500 has dropped nearly 21%. I believe it is a good time for investors to buy in.
Stocks are more likely to rise following the midterm elections. The US midterm elections, as well as a possible shift in the balance of power in Congress, could have a significant impact on the economy. A divided government could result in political gridlock that hinders major policy changes, which investors see as positive for equities, causing the stock market to rise. Regardless of the outcome, previous midterm elections have signalled the start of a period of positive market performance, with stocks performing better in the six months following an election. This is what investors are looking for after a year in which the S&P 500 has dropped nearly 21%. I believe it is a good time for investors to buy in.
Which sectors or companies to watch?
Because midterm elections represent a restructuring of the political scene, the S&P 500 has historically rallied after midterm election. If the midterm elections result in a divided government, stocks will benefit greatly. Overall, all sectors including health, energy and technology companies will perform well. Furthermore, regardless of the outcome of the midterm elections, military spending is expected to rise, and the largest defence suppliers $RTX Corp(RTX.US$ and $Lockheed Martin(LMT.US$ stand to benefit the most.
Because midterm elections represent a restructuring of the political scene, the S&P 500 has historically rallied after midterm election. If the midterm elections result in a divided government, stocks will benefit greatly. Overall, all sectors including health, energy and technology companies will perform well. Furthermore, regardless of the outcome of the midterm elections, military spending is expected to rise, and the largest defence suppliers $RTX Corp(RTX.US$ and $Lockheed Martin(LMT.US$ stand to benefit the most.
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