gridlock

Expecting Plenty of Bull

Posted on September 27, 2018

Elections are nearing, and that means plenty for investing, considering that stocks tend to do a bit better after elections due to what’s known as gridlock. During gridlock, legislation stalls as both parties attempt to block each other in Washington, leaving stocks free to rise without fear of risk aversion — when investors hold off until any new laws pass. Add to that the idea of the “Halloween Effect,” which claims that stocks always do better between October and May, and you’ve got a potential for lucrative investing as both the elections and Halloween approach. True, current politics are proving to be a bit different from the norm, but that doesn’t mean the market cares about the infighting. If history has anything to say about it, now would be the time to expect bullish returns. Just remember, though history has borne out these statistics, as always, one should do their own research.

gridlock