Ken Fisher, the founder of Fisher Investments, has been keeping a close eye on the effects of the recent midterm elections in the US. He believes that the outcome of the elections could result in a potential “midterm miracle” for investors. In this blog post, we’ll take a closer look at Fisher’s insights and analysis of the political landscape and what it means for your investment strategy. So, whether you’re a seasoned investor or just starting out, keep reading to learn more about what’s in store for your portfolio.
Fisher Investments’ Founder, Ken Fisher, Provides an Update on the “Midterm Miracle”
Introduction
Investing can be a complex and unpredictable venture, and many factors can affect how markets perform. One factor that has recently captured investors’ attention is what is known as the “Midterm Miracle,” a trend in the stock market that’s been around for decades. Fisher Investments’ founder, Ken Fisher, recently provided an update on this phenomenon. In this article, we will explore what the “Midterm Miracle” is, what could cause it, and how investors can potentially benefit from it.
What is the “Midterm Miracle”?
The “Midterm Miracle” refers to the three calendar quarters beginning from October 1st of a US midterm election year. This period has historically shown a high frequency of positivity, which has made it one of the most profitable spans in stock market history. Investors have long speculated about why this phenomenon happens. Some hypothesize that the uncertainty around a new government’s regulatory and policy changes causes the market to be volatile in the first year of a new presidential term, while in the second year, the market tends to stabilize.
How Can Investors Benefit from the “Midterm Miracle”?
The stock market favors the gridlock that occurs when the legislative and executive branches are controlled by different parties, rather than one political party or another. The current iteration of the “Midterm Miracle” began in October 2022 and is closely tracking historical averages. With a Democratic president and a split Congress, legislation is destined to be watered-down, which is bullish for markets that thrive on predictability. This gridlock should continue to serve as a tailwind for a market recovery.
Investing in securities involves a risk of loss
It is important to note that investing in securities involves a risk of loss, and past performance is never a guarantee of future returns. Investors should conduct their due diligence and consider their risk tolerance and investment objectives before investing in the stock market or any other securities.
Conclusion
In summary, the “Midterm Miracle” is a phenomenon referring to the three calendar quarters following a US midterm election that historically has shown a tendency towards positivity. Fisher Investments’ founder, Ken Fisher, believes that this trend is likely to continue, given the gridlock in the current political climate. However, investors should always be wary of potential risks involved in the stock market and do their own research before investing.
