Is the Stock Market Predicting US President Winner?

Lightning may never strike the same place twice, but to quote Mark Twain: “history doesn’t repeat itself, but it often rhymes.” This year’s Presidential election cycle is no different.

We are seeing very similar trading action on the stock market to four years ago… Typically, in an election year, the stock market sees increased participation and volume in the summer months only for stocks to level off in the month preceding the big day.

Institutional investors generally sit on the sidelines, waiting to see how markets will respond to the winner that gets into the Oval Office. We have been advising traders to have a more defensive mindset by lowering exposure (usually only 15-20% of your usual investing position in stocks), investing in more ETF’s, and holding more cash.

However, some indicators within the stock market can predict the outcome of the election. Without any political biases, some big flags show who the market is pricing in to win.

Watch the full interview to use this indicator to your advantage and what to expect in markets during/after the United States President is announced.