Election Day

Research over at Dr. Ed Yardeni's Blog suggest that buying on election day in the mid-term  congressional elections has a high probability of a positive outcome.  For those of you not interested in politics or were never "poly-sci" majors at DePauw University, these elections are today.  We also talked about this last week.

Here's Dr. Ed's conclusion as to why markets may be positive after these elections:

"Why has this mid-term cycle been so consistently bullish since 1942? The most likely explanation is that mid-term elections tend to increase gridlock in Washington, DC. While the debt-ceiling political crises of August 2011 and late 2012 suggested that too much gridlock is bearish for stocks, it has been quite bullish historically. Jim and I believe that it might be again after tomorrow. It would be bullish to see that our Founding Fathers’ system of checks and balances, designed to limit the folly of our foolhardy politicians, is still working." 

Link:  Yardeni:  "Congressional Cycle is Bullish."

*Long ETFs related to the S&P 500 in both client and personal accounts although these positions can change at any time.