Stock Market Metric says the likely Winner is…Trump

“Going back to WWII, S&P 500 performance between July 31 and Oct. 31 has accurately predicted challenger victory…”

The stock market’s election year performance between July 31 and Oct. 31 has often accurately predicted the next president — and this year it’s pointing to a victory by Donald Trump, if history is a guide.

Sam Stovall, chief investment strategist at CFRA, says the market’s decline this fall has been a bad omen for the incumbent party and Hillary Clinton, who still holds a six point national lead in a new poll. The S&P 500 is down 2.2 percent since its close of 2,173 on July 29, a Friday and the last trading day of July.

trumpwinning_small Stock Market Metric says the likely Winner is…Trump Business

“Going back to World War II, the S&P 500 performance between July 31 and Oct. 31 has accurately predicted a challenger victory 86 percent of the time when the stock market performance has been negative,” he said. The one time in eight that the incumbent party won with a negative stock market was in 1956, when Adlai Stevenson challenged President Dwight D. Eisenhower.

Stovall said in that year, Britain and France joined with Israel in a military action against Egypt over the Suez Canal. It was also the year of the Hungarian Revolution.

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