Asset Watch
Wednesday, November 9, 2022
Furthermore, the DAX Index is highly correlated with the S&P 500, and with the U.S. midterm elections commencing on Nov. 8, LPL strategists Barry Gilbert and Jeffrey Buchbinder told clients on Nov. 7: “Markets historically have done well in the year after midterms. In fact, they have been higher 18 out of 18 times in the following year dating back to 1950, with nearly identical historical returns under Democratic and Republican presidents.”
So if the S&P 500 continues its ascent, the DAX Index should follow suit. But given investors’ mood swings in 2022, it may be wise to exit if the 200-day MA becomes resistance.