This Market Signal Has Been 95% Accurate for Nearly 90 Years. What Investors Need to Do Now to be Ready

Key Points Investing in stocks in the third year of an election cycle has proven to be a great bet. The market has historically staged strong rallies from October through December. 10 stocks we like better than S&P 500 Index › One of the best predictors of stock market performance over the past nearly 90 years isn't some fancy valuation metric, like the Shiller cyclically adjusted price-to-earnings (CAPE) ratio or Buffett indicator. Nor is it some complex macroeconomic forecast or interest rate model. It's actually the midterm elections. According to research by Fidelity, the S&P 500 (SNPINDEX: ^GSPC) has had a positive performance one year after the midterm elections 95% of the time since 1938.