November elections pose a risk to stocks, but history says equities will gain momentum heading into 2023.
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Phil Rosen
Aug 22, 2022, 19:26 IST
Traders work on the floor of the New York Stock ExchangeMichael M. Santiago/Getty Images
Markets are set to slump ahead of November midterm elections, according to Barclays — but history says a rally could follow regardless of the results.
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1. Election risk could soon take center stage for the stock market. Ahead of November 8, investors should reduce risk since equities historically underperform going into midterms, according to Barclays.
In particular, Barclays flagged a change in voting sentiment on betting site PredictIt.
"The wide margin Republicans have enjoyed all through the year began narrowing since June end, which may be due to falling gasoline prices and a still resilient labour market boosting support for the Democrats," the strategists said.
The S&P 500 is down roughly 11% year-to-date, enduring a steep downturn before the recent bounce since June, which some analysts are calling a classic bear market rally.
10. Apple could soar more than 30% as its outperformance against the broader stock market provides a bullish setup. That's according to Bank of America analysts, who said if share prices break above its December peak of about $183, the next rally will bring it into the $230s. Dig into the data here.
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