I heard a knowledge level on this week’s TCAF that blew me away:
There have been 20 midterm elections since 1942. The S&P 500 was optimistic from then till the next July throughout all 20 of them.
It didn’t matter if a Democratic president held or misplaced the senate or the home. Similar for Republicans. The market doesn’t care about political opinions. What it responds to is uncertainty, and it hates it. That’s why shares can rally on dangerous information if the dangerous information isn’t fairly as dangerous as folks feared it might be.
Like ketchup and steak, politics and investing ought to be stored far-off from each other.
I hope you get pleasure from this episode of The Compound and Buddies with Joe Terranova. Take pleasure in the remainder of your weekend.