Stocks Closed Higher Yesterday, Election Day Is Today, Stocks Typically Rise After Midterms

Plus 5 New Strong Buys for Today Stocks Closed Higher Yesterday, Election Day Is Today, Stocks Typically Rise After Midterms [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Closed Higher Yesterday, Election Day Is Today, Stocks Typically Rise After Midterms [Stocks Closed Higher Yesterday, Election Day Is Today, Stocks Typically Rise After Midterms]Image: Bigstock Stocks closed higher to start the week. Today is election day. And whichever party wins, history has shown that the markets stand to benefit. The 4-year Presidential Cycle shows that Q4 of year 2 (midterm year, which is now), is the second strongest quarter of all 16 quarters, with Q1 of year 3, being the strongest quarter. Moreover, year 3 (that's 2023), of the 4-year Presidential Cycle is the best year of all 4 years. So we are literally at the beginning of one of the best times for stocks. In fact, since 1950, stocks have always gone up in the year after midterms. And the average 12-month forward returns are 18.6%. So be sure to vote for the candidate of your choosing. But whichever party wins, history has shown that it's the market that typically celebrates. Friday's better than expected jobs report didn't hurt trading yesterday as it underscored the resiliency of the U.S. economy. Today we'll see what the small business outlook is for the economy with the NFIB Small Business Optimism Index. Earnings season continues on with another 436 companies on deck to report today (1,569 in total between today and the end of the week). In the meantime, stocks have performed well ever since the markets put in their key upside reversal on October 13. Add in a stronger than expected Q3 GDP, and even stronger estimate for Q4 GDP, a better than expected earnings season, multiyear low valuations, and the fact that we're at the beginning of one of the best seasonal periods in the market, and there's plenty of reason to believe that this rally has a lot more upside to go. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [20 Stocks to Sell Now]( Today, we are inviting you to take a free peek at our proprietary, exclusive, and up-to-the-minute list of 20 stocks that Wall Street's top analysts hate. These are true "Strong Sell" stocks. Many of these appear to have good fundamentals and might seem like okay investments, but something is wrong. Analysts smell something seriously rotten about these companies Sell-side analysts may not have a 100% hit rate on their buy ratings, but they almost always are spot on when they throw red flags and issue "sell" ratings. 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