collected by :Haron Adler
as mentioned in One, the stock market just made a positive move that has not happened since 1958, the same year that NASA was born and President Dwight Eisenhower, a Republican, was in the White House. After a fairly rocky month, stocks closed out July with solid gains, extending the S&P 500's SPX+0.46% winning streak to four months. Historically, when the market gains in April, May, June and July of midterm election years, the market has finished higher in that year, according to Saut. "The history of midterm election years is that stocks become dicey in August, but tend to rally as we approach the midterm elections," said Saut, in a note. Even without the added boost from politics, stocks almost always gain in years when the market finished higher between April and July, according to Paul Hickey, an analyst at Bespoke Investment Group.
as mentioned in One, the stock market just made a positive move that has not happened since 1958, the same year that NASA was born and President Dwight Eisenhower, a Republican, was in the White House. After a fairly rocky month, stocks closed out July with solid gains, extending the S&P 500's SPX+0.46% winning streak to four months. Historically, when the market gains in April, May, June and July of midterm election years, the market has finished higher in that year, according to Saut. "The history of midterm election years is that stocks become dicey in August, but tend to rally as we approach the midterm elections," said Saut, in a note. Even without the added boost from politics, stocks almost always gain in years when the market finished higher between April and July, according to Paul Hickey, an analyst at Bespoke Investment Group.
Trump has trained stock market investors
Although he appears to be unpredictable, some reactions to him in the stock market have become quite predictable. Whenever the debate becomes heated and global tensions surface, the stock market reacts adversely as well. Read: This is the only second-half investment strategy you needThe action in the stock market overnight after Thursday's session was indicative of that. That is the lesson the stock market is learning from Donald Trump. Although Donald Trump himself may be very unpredictable, the stock market considers the tariff battle to be a provider of rather predictable opportunity instead.The complete bullandbear cases for stock market investors
as informed in Jeff Reeves's Strength in NumbersOpinion: The complete bull-and-bear cases for stock market investorsWe're at Peak Worry — againIn a Dickensian chapter for the stock market, we are in the middle of an earnings season that illustrates both the best of times and the worst of times for investors. Record valuations: Even after recent volatility, many market experts are still concerned that stock valuations are simply too far out of whack with historical norms. Big trouble for big tech: The very public and very serious declines in some big tech stocks, including Netflix and Facebook, didn't just burn individual stockholders. Their declines also create broader problems for market-cap-weighted indexes that are heavily reliant on big tech stocks. There was fear that the pain of this sector would spill over into all parts of the market via cascading defaults that sparked a broader credit crisis, and that the bond market itself would roll over.Emotions are getting the best of stock market investors
To control emotions, prudent investors must understand this one thing before making buy or sell decisions in this stock market. Internet ETF FDN counts Amazon, Facebook, Netflix NFLX, -0.41% and Alphabet GOOG, -0.20% GOOGL, -0.24% as its largest holdings. At The Arora Report, in addition to what to buy and sell, every recommendation is accompanied by recommended position size. Disclosure: Subscribers to The Arora Report may have positions in the securities mentioned in this article. He is the founder of The Arora Report, which publishes four newsletters.
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