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Did Midterm Voters Help Stocks Out?

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It was originally thought that the Nov. 8th U.S. midterm elections should clear up recent political uncertainty for the market, since stock markets never like any flavor of uncertainty. But, now that the mid-terms are in the rear view mirror, is that what ended up happening? Our Chief Equity Strategist and Economist, John Blank, is here now with that answer.

1. With a lot at stake for investors and since we still don’t know the final outcome of all the races, what is the takeaway for the market and investors up to this point?

2. What happens to investor and ultimately market sentiment on the prospects of a divided government?

3. Do you see a divided government doing anything to help inflation and our economy?

4. Besides here in the U.S., major politics globally have made it to the top of the world’s financial agenda. A major event being the United Nations Conference of the Parties in Egypt. You wrote recently that that is a generic phrase in International Relations-speak meaning a committee created after an international treaty is signed, tasked with making decisions about how that treaty is implemented. How does the outcome there impact markets globally?

5. So, even though elections here may still have investors a bit edgy, historically here, excluding the Great Depression in 1929, published data shows some of the best annual market returns have been when the sitting President did not have full control over both houses of Congress. Do you see that being the case if that happens here?

6. Going into year’s end then, is it accurate to say the market is more concerned about the economy and inflation?

7. Is it time now then for investors to take profits out of this recent rally or put fresh money to work?

8. Along those lines, the current Zacks Industry Ranks offer just one Very Attractive sector: Energy. Financials have slid to Attractive. And in the top third of sectors, Health Care stays at Market Weight. Stocks you’re looking at in those sectors include Halliburton (HAL - Free Report) , LPL Financial (LPLA - Free Report) and Medpace Holdings (MEDP - Free Report) .

Our Chief Equity Strategist and Economist, John Blank on the markets. With John, I’m Terry Ruffolo.


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