The stock market does not perform well in the year leading up to midterm elections. This year’s election may just add to the overall woes besetting equities. Historically, the average annual return of the benchmark S&P 500 Index in the 12 months before the November 5 election is 0.3%, versus the historical average of 8.1%. in non-mid-term years. In 2022, of course, with the S&P 500 down more than 20%, those historical numbers look fairly good. Unfortunately, volatility also tends to rise before and after midterm elections. Will midterm elections cause a market dip in 2022? But this year is…
Insights & Advice
Tag: consumer sentiment
The grumpy consumer
You would think that the Americans would be feeling pretty good right now. Wages are increasing almost monthly. Workers have their pick of jobs in this tight labor market and the coronavirus seems to be peaking. So why are so many consumers unhappy? Consumer sentiment numbers, as measured by the University of Michigan Consumer Sentiment Survey, fell in preliminary February 2022 numbers to its lowest level in more than a decade. Back then, in October 2011, the unemployment rate was more than double the present 4% rate. In a January 2022 Gallup Poll, 72% of those surveyed thought it was…