As you can see, stocks are hot. Not just domestically, but globally.
Remember, going back to 1950, there has never been a 12-month period, following a midterm election, in which stocks were down.
And the average one-year return, following the eighteen midterm-elections of the past seventy years, was +15% (about double the long-term average return of the S&P 500).
We’re five months removed from the midterm election, and the S&P 500 is up just over 12%.
Related, we knew coming in that we had two important positive catalysts for stocks: 1) The rate-of-change in monetary policy tightening would slow dramatically this year (which it has), and 2) the rate-of-change in the fiscal policy madness would be zero (if not reversed), with a split Congress. Gridlock.