It has been statistically shown that the stock market can act as a crystal ball when there is an impending presidential election.
Analysts look at the three months leading up to the election to see if the president in office will stay, or if he will be sent packing –
In fact, before the 2016 election, the S&P 500 had an 86.4% success rate using this three-month strategy to forecast the election.
Today, we’re looking at a market correction six weeks before the election. Stocks were up following August’s stellar performance until Monday, when we saw the Dow lose over 500 points in a single day of trading, marking four straight days of losses.
But this month’s bearish movement isn’t necessarily the deciding factor for who our next president will be. Because if we know anything to be true, it’s that this year has been unlike any other…
The global pandemic created a snowball effect. World economies are still reeling from the coronavirus-inspired reductions in consumer spending. Retail, travel, and hospitality are taking it on the chin. Not to mention, the demand for oil has dropped along with oil prices.
It’s not surprising that the market has corrected. At the end of the day, the S&P’s predictive power may not be so strong in 2020. But regardless of who wins November’s election, it’s likely we’ll see more downside in the market before then.
That’s why I have found the top 10 bearish trades to play right now – and profit on before the presidential election, regardless of who sits in the White House next year.