Most data point to an upturn in the S&P 500 after the midterm elections.
Since 1950, the average return for the S&P 500 in the 12 months after a midterm election is 15%, surprisingly with no down years, Lynch says.
In 17 of the 19 midterms since 1946, stocks performed better in the six months following the election than they did in the six months leading up to it, Liz Ann Sonders, Schwab's chief investment strategist, said.
And if the outcome this year is as expected with a Democratic president and either a divided Congress or a Republican sweep of both chambers, equity investors should benefit with the S&P 500 averaging annual gains within the range of 13.0%, he said.
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