Two weeks ago we noted on the blog that how rare it is when the S&P 500 makes a new high during the usually tricky month of August. We also found that when this happens during a presidential election year, the S&P 500 returns the rest of the year are rather strong—up 5.2% on average and higher three out of four times.
Turns out, when the S&P 500 makes a new all-time high in August, the coming election has seen some very lopsided results as well. Now be aware, at LPL Research we do not have a political bias. We have Republicans, Democrats, even Libertarians on our team and in no way is this a political statement. It is simply interesting and worth sharing.
Looking at the four other times since 1950 that the S&P 500 made a new high in August, all were rather wide margins of victory. In fact, Nixon beating McGovern in 1972 was one of the largest victories ever.
Be sure to be on the lookout for our Weekly Market Commentary due out later today, which will take an interesting look at key sectors ahead of the election and what they could be telling us about who might win the election.
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