Stocks are Hot
Macro Perspectives
We start a new week, and end last month, let's take a look at the performance of global asset prices year-to-date.
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:
The rate-of-change in monetary policy tightening would slow dramatically this year (which it has).
The rate-of-change in the fiscal policy madness would be zero (if not reversed), with a split Congress. Gridlock.