Barclays Says Stock Bulls Confuse Correlation With Cause – Bloomberg 10-28-14

Salient to Investors:

Jonathan Glionna at Barclays said:

  • There is insufficient data not enough data – only 21 observations in the last 86 years – to expect a repeat of stocks’ habit of rallying after midterm elections – a median 7% in the 90 days following, with a range of -10% to +20% and positive returns 86% of the time.
  • The midterm results on November 4 will not cause market volatility, A Republican-controlled Congress is unlikely to enact near-term changes that will affect the equity market’s direction, while market reaction to Democrat control of the Senate would still be muted.
  • The S&P 500 will end 2014 little changed at 1,975.

The average of 19 strategists predicts the S&P 500 to end 2014 at 2,050.

Read the full article at http://www.bloomberg.com/news/2014-10-28/barclays-says-stock-bulls-confuse-correlation-with-cause.html

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