Yes, Yellen came to the rescue, but I have to say, smart buyers were looking for an excuse that seems to come with any 4.5% pullback. That being said, the Fed question can be put to bed until mid-2015, although, I do not think the timeline has changed. It is interesting that the Fed is so concerned with global growth when US growth is still questionable. Nevertheless, the focus for now will be on earnings and very soon, the midterm elections.
GOP Controlling Congress - Get Long!!!
The stock market does quite well after a mid-term election cycle. It will climb an average of 15% six-months after mid-term elections; however, an impressive phenomenon will take place when Republicans take control of the House and Senate.
Since the end of the Great Depression, the GOP has only controlled the House and Senate under four different Presidents; the stock market loved it!
| Truman | Dow Performance |
| 1947 to 1949 | +13.7% |
| Eisenhower | Dow Performance |
| 1953 to 1955 | +74.3% |
| George Bush | Dow Performance |
| 2003 to 2007 | +54.0% |
Nevertheless, what had a lot of Investors excited at that time were the possibilities of a Bill Clinton stock market after the GOP took control of Congress.
| Bill Clinton | Dow Performance |
| 1995 | +33.5% |
| 1996 | +26.0% |
| 1997 | +22.6% |
| 1998 | +16.1% |
| 1999 | +25.2% |
| 2000 | -6.0% |
Moreover, I want to reiterate the historical returns six-months after mid-term elections and much more… I am discussing this tonight on my show. Please watch or set your DVR: Making Money with Charles Payne on Fox Business 6 PM.
Miracles and the Unintended Consequences of Advancement
As Tesla unveils its new car, and chances are, we’ll be a step closer to driverless vehicles. This is amazing news to everyone, except those who may be in need of an organ transplant. The CEO of MakerBot rightly predicts the significant drop in auto accidents will cause a crisis as there will be a lack of organs being donated. Hopefully his industry will come to the rescue, as it did with the miracle operation on a 2-week old baby that was made easier when doctors printed a copy of his heart which was riddled with holes and awkwardly placed in the chamber. The doctors were able to study the heart prior to opening the child’s chest cavity, removing the concern for surprises during the operation. (Let’s give a shout out to Matthew’s Hearts of Hope which funds the 3-D printing project and Morgan Stanley Children’s Hospital!) On personal note, on this day two years ago, a young women was declared brain dead from an auto accident. Four days later, her organs saved the lives of eight people. Thank you, Sammi Kane Kraft, and God Bless your family.
Join the conversation as a VIP Member