Posted 1/29/2024, 5:05:00 PM
Stocks Flashing Rare Election Year Signal That Has Led to 15% Returns Historically, But Risks Remain
- Stocks are flashing a rare signal that has historically led to strong 15.6% average returns 100% of the time
- The signal is when stocks have a positive January return during an election year, which has only happened 11% of the time
- Top performing sectors like tech and financials could see 20%+ returns based on this signal
- There are risks though - stocks are still vulnerable to a 5-15% correction after recovering from a bear market
- Investors are growing optimistic, pricing in Fed rate cuts and cooling inflation leading to a soft economic landing