Markets Soar In Post-Election Rally
Stocks closed sharply higher across the board yesterday as the anticipated post-election relief rally kicked into gear.
While some individual races are still too close to call, none of those will affect the already determined outcome of the House flipping Democrat and the Senate remaining Republican.
Politics aside, this is great news for the market.
For one, the market's pullback was largely due to the uncertainty ahead of the midterms. But with the elections finally over and the political lay of the land known, the market can get back to focusing on the strong economy and record corporate earnings.
Two, the market typically goes up after the midterms. Since WW2 (last 72 years), there's been 18 midterm elections, and in every one the market was higher 12 months later. In fact, the market has increased on average of 17% in the year after the midterms.
And three, since November and December are historically strong months for the market, especially after midterms, there's no time to waste.
So the market should be back to its winning ways. And based on yesterday's price action, it looks like that's already begun.
For those getting into the right stocks, your gains could be even bigger with 25%, 50% or even 100% returns or more.
A few areas that are expected to do great include financials, tech, and business service stocks.
One way to participate in all three is thru the revolutionary blockchain technology.
More and more companies are using blockchain (dubbed the "internet of money") in their businesses as it provides an incorruptible digital ledger for all types of transactions and data transfers -- from financial, to shipping, to health records, and more. It's truly revolutionizing virtually all industries that rely on security, cost efficiency, and speed. And the companies using it are as impressive as the companies providing it. This includes titans of industries like IBM, Intel, and Nvidia, to plenty of innovative start-ups.
This must-have technology has created an explosive industry and is poised for massive gains. To learn more about how the blockchain technology is shaping the way companies do business, and more importantly, how to profit from it, please check out our latest commentary...
5 Ways To Play The Blockchain Boom?
Best,
Kevin Matras
Executive Vice President, Zacks Investment Research
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