Pro Perspectives 4/28/23

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April 28, 2023
As we end the week, and month, let’s take a look at the performance of global asset prices year-to-date.

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.

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