Investors should be prepared for a summer of blah thanks to the looming mid-term elections.
Says the data crunchers over at Bank of America Merrill Lynch:
"The 3-month seasonal pattern during the mid-term year does not suggest a summer rally. May-July is the weakest 3-month period of the mid-term year and is up 46% of the time with an average return of -1.49%. Mid-term year 3-month seasonality flips to positive from negative in August-October. This suggests becoming more bullish on the S&P 500 in August rather than selling July/August based on the typical seasonal pattern highlighted above. However, the best 3-month period during the mid-term year is not until October-December, which is up 86% of the time with an average return of 6.37%."
If those returns come to fruition, Trump won't have many stock market related tweets during those 90 degree June temperatures. The uncertainty in the markets ahead of the mid-term elections underscores why investors must be prepared today. Making knee-jerk reactions at the height of volatility is a surefire way to lower one's returns.
TheStreet's May 5 conference "How to Diversify Your Portfolio: A Boot Camp for Investors" will give investors the actionable insights and guidance needed to be positioned before the mid-term elections. Quickly register here.