Some Election Data to Cheer You Up – Or At Least Boost Your Wealth

Some Election Data to Cheer You Up – Or At Least Boost Your Wealth

I sort of feel like an athlete before a big game, a soon-to-be graduate, or even a groom before the wedding.

It’s been a long journey with a lot of preparation, hard work, and patience, and now the big day is tomorrow.

Less than 24 hours from now, some polls will already be closed and Election Day over. Other states will still be open as closing times fade from east to west like the setting sun.

If you’re nervous about what the result will be, when we’ll get the result, and how people will react, I don’t blame you.

My colleague, friend, business partner, and fellow investor, Luke Downey, did his usual outstanding research into election-related data. What he found made us feel better – at least about our finances – and I hope it will make you feel a little bit better, too.

Since 1988, here’s how stocks have performed after Election Day:

Two weeks after the election, the S&P 500 dropped 0.9% on average, while the technology heavy Nasdaq 100 dropped more at 2.2%.

Two months after the election, things had changed. The S&P 500 gained 2.4% on average, while the Nasdaq 100 rose 1.4%.

Interestingly, small-cap stocks led every step of the way. The Russell 2000 vaulted an average 6.6% two months after the election, and also beat the other benchmarks in the other time frames.

This data tells us to expect some wobbles after tomorrow and maybe into next week, though we might see a small lift in small caps. This aligns with other data from my Quantum Edge system that indicates potential short-term weakness in stocks as they recently fall out of “overbought” in my Big Money Index.

But now, look at this…

Getting past the immediate election aftermath and look a few months out, stocks of all sizes ripped higher, especially over the following six and 12 months.

The takeaway is simple: Expect some chop for major indices a couple of weeks out, but don’t panic and don’t get too bearish. If you do, you’ll miss some of those healthy gains that appear six and 12 months later.

What’s more, these patterns jibe with what our proprietary Big Money Index has also discovered about election years. The same pattern emerges nearly every time whether a Republican or Democrat wins.
When the race for president is too close to call, Big Money investors tend to lighten up ahead of the election. But that money flows right back into stocks once things settle after the election and any uncertainty – real or perceived – has passed.

The time has come for voters to decide this election. Buckle up, as the ride might get a little bumpy, but know that smart investors who own the highest quality stocks remain on the right road and going in the right direction to arrive at the destination of greater wealth.

We’ll have plenty to discuss and analyze after the election, but now is a great time to do your research. Identify the stocks you want to own with superior fundamentals, strong technicals, and Big Money inflows. They give you the highest probability of making money, and you can do even better buying them on sale in post-election volatility.

Talk soon,

Jason Bodner
Editor, Jason Bodner’s Power Trends

P.S. You might also want to check out the Day-After Summit while it’s still available.

In this special briefing, a couple of my colleagues, including Louis Navellier, lay out an approach to navigating the post-election chaos.

It has nothing to do with following your instincts… or with human emotions. It’s quantitative analysis, which I clearly like, and a tool for anyone looking to turn uncertain macroeconomic, financial, or political events into outsized stock market gains.

You can get full details of how it works, and how you can use it to position yourself to profit. Watch the broadcast here before it’s taken down.