Seasonal influences are particularly relevant during U.S.
Mid-term election years.
Volatility in equity markets normally increases from late April
to mid-October due to concerns about a possible change in political
control in Congress. These concerns are very real this year. They
escalated late last week when Paul Manafort agreed to testify in
the Mueller investigation. Republicans control the House by 16
votes and the Senate by one vote. On average during a Mid-term
election year, the controlling party loses 24 House seats to the
opposition party. Anticipation of a possible change, regardless of
the final result, is a major reason for a correction in North
American equity markets into October
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Seasonal influences are particularly relevant
Posted by polish1 on 17th of Sep 2018 at 03:11 pm
Seasonal influences are particularly relevant during U.S. Mid-term election years.
Volatility in equity markets normally increases from late April to mid-October due to concerns about a possible change in political control in Congress. These concerns are very real this year. They escalated late last week when Paul Manafort agreed to testify in the Mueller investigation. Republicans control the House by 16 votes and the Senate by one vote. On average during a Mid-term election year, the controlling party loses 24 House seats to the opposition party. Anticipation of a possible change, regardless of the final result, is a major reason for a correction in North American equity markets into October