The Best Time to Prepare Is While The Bull Runs

The comments below are an edited and abridged synopsis of an article by Frank Holmes

“In case you couldn’t tell from the ubiquitous political ads and yard signs, [US] midterm elections are right around the corner. Historically, volatility has increased and markets have dipped leading up to midterms on uncertainty, but afterward they’ve outperformed.”

“Of especially good news is that we’re entering the three most bullish quarters in the four-year presidential cycle, according to LPL Financial Research. The fourth quarter of the president’s second year in office, which begins next month, and the first and second quarters of the third year have collectively been the best nine months for returns, based on 120 years of data.”

Best Time to Prepare Is While The Bull Runs | BullionBuzz

“It makes sense why this has been the case. Following midterms, the president has been motivated to ‘boost the economy with pro-growth policies ahead of the election in year four,’ writes LPL Financial.”

Up for discussion: Government policy is a precursor to change; money managers and banks are adding safe havens at a faster pace; and the next crisis could be triggered by passive indexing.

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