Markets Entering Historically Strong 6-Months: Stovall

The video discusses market trends, highlighting the strong performance expected from November to April, especially after midterm elections. It examines the impact of political scenarios on market returns, noting a 15% average gain with a Democratic president and Republican Congress. The discussion shifts to small cap stocks, which are underperforming compared to large caps in a strong dollar environment. Finally, the video explores the effects of declining oil prices on the consumer discretionary sector, suggesting potential benefits despite current downtrends.

What is the average gain for the stock market during the November through April period after midterm elections?

• 7%

• 20%

• 1.4%

• 15%

In a scenario with a Democratic president and a Republican Congress, what is the expected average stock market gain?

• 20%

• 5%

• 15%

• 10%

Why do large-cap stocks tend to perform better in a strengthening dollar environment?

• They are less affected by political changes.

• They have higher premiums.

• They are more liquid and well-known.

• They are less known internationally.

What is the current trading premium of the S&P Smallcap 600 compared to the S&P 500?

• 40%

• 10%

• 20%

• 30%

How does a $10 decrease in the price of oil affect real GDP?

• Adds 40 to 45 basis points

• Adds 30 to 35 basis points

• Adds 20 to 25 basis points

• Adds 10 to 15 basis points