Deutsche Bank suggests seasonal strength could drive S&P 500 rally
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
Jim Reid of Deutsche Bank stated that markets have entered a historically strong seasonal period ahead of the midterm elections. He noted that the S&P 500 has risen in 21 of the last 23 midterm election cycles. Furthermore, S&P 500 earnings are currently expected to rise about 30% year over year, which could provide a tailwind.
From aol.com
Why it matters
The analysis suggests that historical patterns and strong corporate earnings could support a rally in the S&P 500 leading into the end of the year. This view is based on the frequency of positive returns during the three-month window surrounding midterm elections.
From aol.com
Who's involved
- Jim ReidProvides market commentary and historical analysis
- Deutsche BankThe firm where Jim Reid holds a senior macro research role
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- FEDSpeculative
Investors might see changes in asset prices if the historical seasonal trend holds true.