Whether President Barack Obama will win re-election this year may be foreseen by the stock market, according to Sam Stovall of Standard & Poor’s.
The Standard & Poor’s 500 Index took longer than usual to fall 5 percent from its peak this year, a sign that any further retreat in U.S. stocks will be “contained,” according to Sam Stovall of S&P.
U.S. stocks posted the best returns when 10-year Treasury yields rose to close to 4 percent, according to a study by Standard & Poor’s that tracked market performance since 1953.
The Standard & Poor’s 500 Index slipped, halting a four-day streak of record closes, as investors weighed equity valuations. The Dow Jones Industrial Average closed at an all-time high.
While Republicans promote themselves as the friendliest party for Wall Street, stock investors do better when Democrats occupy the White House. From a dollars- and-cents standpoint, it’s not even close.
The political calendar is working against investors.
"When the dividend yield for the' standard for stocks' approximates that of the' benchmark for bonds,' investors have historically concluded that stocks represent the greater opportunity."
- Sam Stovall on Oct 20, 2014
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