October has already seen some volatility, with the VIX (VIX) up 32% in the past five days. That's been sparked by fears of inflation, but there's yet another potential driver of volatility for October: the mid term elections.
Ryan Detrick of LPL Financial wrote in a recent research note that the mid terms usually produce some volatility before the elections are decided, but that stocks perform exceptionally well one year after mid terms. That's great historical data to take into account, but let's always remember to apply that to the circumstance at hand. Some think the economy is headed for a slowdown. If that's true, investors will have to weigh that against whatever comes of the elections.
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